CrowdStrike stock price forecast: MKM Partners sees upside to $240

By:
on Sep 17, 2022
  • MKM Partners says CrowdStrike is a "buy" with upside to $240.
  • Analyst Catherine Trebnick explained why in a note to clients.
  • CrowdStrike stock is currently down nearly 30% from its YTD high.

CrowdStrike Holdings Inc (NASDAQ: CRWD) is down nearly 30% from its year-to-date high but an MKM Partners’ analyst is convinced the stock will fully recover over the next twelve months.

CrowdStrike stock could jump 40% from here  

On Friday, Catherine Trebnick assumed coverage of “one of the most comprehensive cloud-native platforms” with a buy rating and announced a price objective of $240 a share. In a note to clients, she said:

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The cloud-native architecture allowed CrowdStrike to expand capabilities beyond Endpoint Security with 22 modules that address a $71 billion market opportunity in FY24. We believe the company is in a league of its own.

Last month, CrowdStrike reported its results for the fiscal second quarter that handily beat estimates for both top and the bottom line. It now forecasts $5.0 billion in annual recurring revenue by fiscal 2026 versus $3.0 billion it had guided for last year.

Joe Terranova is also bullish on CrowdStrike

CrowdStrike has maintained the growth in its revenue at more than 55% for ten consecutive quarters. Also on Friday, Joe Terranova (Virtus Investment Partners) also said it was his favourite stock to own in “cybersecurity”.

Cybersecurity can work for you. You’ve seen that with CrowdStrike. The struggles of the market are a headwind, but I’ll hold CrowdStrike through this because I believe on the other side of it, it comes out as a winner.

The MKM analyst is bullish on the cybersecurity industry at large considering she initiated four other names (Fortinet, Zscaler, CyberArk, and Palo Alto Networks) with “buy” ratings as well.

The Global X Cybersecurity ETF is down nearly 20% for the year at the time of writing.  

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