CrowdStrike Stock Is Down After a Disappointing Forecast, But Analysts Are Still Bullish

CrowdStrike (CRWD) shares slumped Wednesday, a day after the company’s full-year outlook came in well below expectations, but several analysts said they still see upside for the stock.  

The company “remains the gold standard for cybersecurity,” analysts at Wedbush said after the results, raising their price target for the stock to $395 from $390, an 11% premium from the stock’s intraday price. They added that worries the company would lose business due to a global outage last summer appeared to be overblown.

CrowdStrike shares were down about 9% to $354.75 in recent trading, and have lost nearly a quarter of their value since hitting a record high in mid February. UBS analysts said they believe the recent slide makes the stock more “attractive,” and that the company’s disappointing outlook could be conservative. They trimmed their price target to $425 from $450, but that would still suggest about 20% upside.

Despite the weaker-than-expected outlook, CrowdStrike’s quarterly revenue and earnings both topped estimates. The company “delivered strong results as it continues to effectively maneuver post-outage headwinds,” analysts at Oppenheimer said, reiterating a price target of $410, and adding they continue to view CrowdStrike as “one of the strongest platform opportunities in security.”