CrowdStrike (CRWD) Identified as a Top Idea by Investment Bank

Investment bank Stephens initiated coverage of IT security powerhouse CrowdStrike (CRWD) with a $450 price target and an Overweight rating, Schwab Network reported yesterday. The investment bank also identified CRWD as a “top idea.”

Why Stephens Likes CRWD

As one of the largest cybersecurity platform providers, CRWD is well-positioned to benefit from its large scale, according to Stephens. Further, CRWD is also poised to get a lift from many companies’ move to large, multifaceted cybersecurity providers instead of a “multiproduct, multivendor approach,” the investment bank stated, according to Schwab.

Security personnel at their consoles, monitoring a global network of threats in real-time.

Among the other growth engines for CrowdStrike are cloud security, security operations, data protection, and AI, Stephens asserted.

A Small Price Target Reduction

Another investment bank, Truist, recently reduced its price target on CRWD to $450 from $460. Truist, which kept a Buy rating on CRWD, believes that firms in general are coping with reduced certainty, while infrastructure names may provide “lukewarm guidance” going forward.

The Recent Price Action of CRWD

In the last month, the shares have lost 1%, while they are up 6% in the last three months.

While we acknowledge the potential of CRWD, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CRWD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.