CrowdStrike Analysts Expect It To Win Market Share Via Platform Differentiation Despite Bigger Players Like Microsoft

RBC Capital analyst Matthew Hedberg maintains CrowdStrike Holdings Inc CRWD with an Outperform, raising the price target from $160 to $170.
The analyst returned from the investor briefing with a better appreciation of CrowdStrike's platform differentiation vs. competitors, notably Microsoft Corp MSFT, its growth initiatives, and the path to reach long-term targets.
The management reiterated the initial $5 billion+ ARR target by FY26 in addition to a line of sight to $10 billion+ in ARR without providing any timeline.
CrowdStrike's key growth drivers include 1) new logo growth with subscription customers; 2) success with top accounts with minimum ARR required in FY23; 3) winning and growing customers of all sizes, with the bulk of new logos coming from the lower end of the market while the bulk of ARR derived from the higher-end of the market; 4) multi-module adoption; and 5) more considerable lands.
As such, the analyst believes there are incremental opportunities with emerging modules (Discover, Spotlight, Identity, and LogScale) and the public cloud.
Finally, the company remains focused on driving improved leverage while investing for growth, with 30%+ FCF margins expected for the foreseeable future.
Overall, Hedberg thinks CrowdStrike remains in a solid position to consolidate security spending and gain market share while delivering stable growth at scale and sustained profitability.
Needham analyst Alex Henderson maintains CrowdStrike with a Buy and raises the price target from $165 to $170.
At the upbeat investor briefing, CrowdStrike offered a strong, positive tone, a compelling strategy replete with robust long-term goals, and simultaneously addressed the critical parts of the bear-camp thesis.
The analyst came away with a reinforced belief that CrowdStrike is delivering a robust and multifaceted platform that addresses a broad range of security challenges in a comprehensive, integrated manner.
CrowdStrike reaffirmed its core proposition that it is a platform, not just an End-Point company.
CrowdStrike went on to allay concerns over share losses to Microsoft, noting it is taking share and laying out the technology, GTM, and efficacy reasons for its head-to-head success with Microsoft.
Barclays analyst Saket Kalia maintains CrowdStrike with an Overweight, lowering the price target from $165 to $162.

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