CrowdStrike (CRWD) Draws Fresh Optimism as HSBC Sees Attractive Entry Point
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is one of the AI stocks currently on Wall Street’s radar.
Crowdstrike is trading at an attractive valuation, according to one Wall Street firm. On February 13, HSBC analyst Stephen Bersey upgraded CrowdStrike Holdings (NASDAQ: CRWD) from Hold to Buy with a price target of $446.00
“We upgrade CrowdStrike to Buy on attractive valuation and AI growth, alongside non-GAAP EPS CAGR of 38.3% over FY26-29e.”
HSBC likes Crowdstrike’s leadership position in a mission-critical, high growth area of cybersecurity. The firm also appreciates its cloud-native architecture and scale due to its structural advantage in AI/ML driven detection given its continuous ingestion of threat signals across its entire customer base.
The firm also pointed to structural advantages over competitors, noting how the likes of Palo Alto face greater friction scaling endpoint data aggregation. Looking ahead, the firm projects robust financial performance, estimating a non-GAAP EPS CAGR of 38.3% over FY26-29 supported by strong revenue CAGR of 27.5% and non-GAAP operating margin expansion of 775bp.
“CrowdStrike’s CY26 non-GAAP operating margin of 21.6% is below the 40%+ margins for other large, well-established software companies, suggesting significant room for further improvement.”
Photo by Jefferson Santos on Unsplash
Rising penetration of cloud-based software and the AI revolution will further benefit the company, noted the firm.
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a leader in AI-driven endpoint and cloud workload protection.
While we acknowledge the potential of CRWD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None. This article is originally published at Insider Monkey.
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