No Result
View All Result
China Secrets Revealed
  • Economy
  • Editor’s Pick
  • Investing
  • News
  • Stock
  • Economy
  • Editor’s Pick
  • Investing
  • News
  • Stock
No Result
View All Result
China Secrets Revealed
No Result
View All Result
Home Investing

CrowdStrike stock could drop to $275 amid valuation concerns, analyst warns

by
July 18, 2024
in Investing
0
CrowdStrike stock could drop to $275 amid valuation concerns, analyst warns

CrowdStrike Holdings Inc. (NASDAQ: CRWD), a prominent name in the cybersecurity sector, is facing a challenging outlook according to a recent analysis by Redburn Atlantic. 

Analyst Nina Marques has issued a “sell” rating for CrowdStrike, forecasting a potential decline in its stock price to $275—a further 23% drop from its previous close. 

This comes on the heels of a 13% decline in the company’s shares over the past month, signaling growing investor concern.

Why is Redburn Atlantic bearish on CrowdStrike stock?

Nina Marques’ downgrade is rooted in valuation concerns rather than the quality of CrowdStrike’s products. 

Despite recognizing the company’s strong cybersecurity offerings, Marques points out that the current stock price does not reflect potential market slowdowns. 

Her caution is based on the belief that the market has not fully factored in a possible deceleration in growth.

Marques is particularly wary of CrowdStrike’s performance in the large enterprise sector. 

She notes that the company has struggled to establish a more substantial presence in this key market segment. 

Additionally, Marques expressed skepticism about the company’s cross-sell opportunities and cited intense competition in cloud security, identity management, and security information and event management (SIEM) as factors contributing to her bearish outlook.

Valuation and market expectations

CrowdStrike’s stock is currently trading at approximately 23 times its estimated enterprise value to sales ratio for the upcoming fiscal year. 

Marques argues that this valuation is significantly higher compared to its cybersecurity peers, who trade at about half that multiple. 

She believes the high valuation overestimates the extent to which IT budgets will expand to accommodate more advanced cybersecurity solutions.

While generative artificial intelligence (Gen-AI) is anticipated to boost demand in the short term, Marques suggests that the market may have overestimated its long-term impact. 

She expects Gen-AI to provide only a temporary uplift in demand rather than a sustained growth trend.

CrowdStrike’s shares are currently trading at around eight times their price at the beginning of the COVID-19 pandemic, reflecting the substantial gains they have achieved over the past few years. 

However, Marques’ analysis suggests that these gains may be unsustainable given the current market conditions and competitive pressures.

Recent developments and guidance

In June, CrowdStrike reported first-quarter financial results that surpassed Street expectations. However, despite these positive results, the company’s stock price declined due to cautious guidance for the future. 

CEO George Kurtz highlighted the strengths of CrowdStrike’s Falcon platform, emphasizing its unique architecture and competitive advantages in addressing major cybersecurity and IT challenges.

For fiscal Q2, CrowdStrike has projected revenue between $958 million and $961 million, with earnings up to 99 cents per share. 

Despite these optimistic projections, the muted guidance has contributed to investor unease.

Earlier this week, CrowdStrike announced the launch of Falcon Complete Next-Gen MDR, aiming to enhance its cybersecurity offerings. 

However, even with these new developments, the prevailing sentiment among analysts remains cautious.

As CrowdStrike navigates these turbulent waters, investors should carefully consider these factors and the potential risks before making investment decisions.

The post CrowdStrike stock could drop to $275 amid valuation concerns, analyst warns appeared first on Invezz

Previous Post

Is Intel the smarter investment as Nvidia peaks? Here’s why

Next Post

How the Kansas City Chiefs and Royals Restarted a (Subsidies) War

Next Post
How the Kansas City Chiefs and Royals Restarted a (Subsidies) War

How the Kansas City Chiefs and Royals Restarted a (Subsidies) War

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!
  • Trending
  • Comments
  • Latest
Hamas claims it will release American hostage Edan Alexander

Hamas claims it will release American hostage Edan Alexander

0
TD Cowen downgrades Molson Coors, lowers price target to $58: Is it time to exit?

TD Cowen downgrades Molson Coors, lowers price target to $58: Is it time to exit?

0
Google’s antitrust ruling draws parallels to Microsoft’s 25-year-old case: Here’s how

Google’s antitrust ruling draws parallels to Microsoft’s 25-year-old case: Here’s how

0
In 2023, Colorado Lawmakers Pushed Back on Cops Practicing Pain Medicine Based on Flawed CDC Guideline

In 2023, Colorado Lawmakers Pushed Back on Cops Practicing Pain Medicine Based on Flawed CDC Guideline

0
Hamas claims it will release American hostage Edan Alexander

Hamas claims it will release American hostage Edan Alexander

May 11, 2025
Fortnite applies to launch on Apple’s App Store after Epic Games court win

Fortnite applies to launch on Apple’s App Store after Epic Games court win

May 11, 2025
Trump’s ‘Art of the Deal’ diplomacy just delivered a global win—without a shot fired

Trump’s ‘Art of the Deal’ diplomacy just delivered a global win—without a shot fired

May 11, 2025
Trump vows to increase trade with India, Pakistan after praising ceasefire agreement: ‘A job well done!’

Trump vows to increase trade with India, Pakistan after praising ceasefire agreement: ‘A job well done!’

May 11, 2025

Recent News

Hamas claims it will release American hostage Edan Alexander

Hamas claims it will release American hostage Edan Alexander

May 11, 2025
Fortnite applies to launch on Apple’s App Store after Epic Games court win

Fortnite applies to launch on Apple’s App Store after Epic Games court win

May 11, 2025
Trump’s ‘Art of the Deal’ diplomacy just delivered a global win—without a shot fired

Trump’s ‘Art of the Deal’ diplomacy just delivered a global win—without a shot fired

May 11, 2025
Trump vows to increase trade with India, Pakistan after praising ceasefire agreement: ‘A job well done!’

Trump vows to increase trade with India, Pakistan after praising ceasefire agreement: ‘A job well done!’

May 11, 2025

Disclaimer: ChinaSecretsRevealed.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2024 ChinaSecretsRevealed. All Rights Reserved.

No Result
View All Result
  • Economy
  • Editor’s Pick
  • Investing
  • News
  • Stock

Copyright © 2024 ChinaSecretsRevealed. All Rights Reserved.