CrowdStrike sees bullish sentiment at Wedbush on growth prospects driven by AI

[Crowdstrike headquarters in Silicon Valley]
Sundry Photography

Wedbush raised the price target on CrowdStrike's (CRWD [https://seekingalpha.com/symbol/CRWD]) stock to $600 from $525 and maintained its Outperform rating on the shares.

"We are raising our price target on CRWD to $600 from $525 reflecting increased momentum in the field around its cyber platform approach based on our recent checks coming in very strong with healthy momentum into the next year for one of the stalwarts of cyber security. CrowdStrike remains one of our favorite tech names and we are seeing deal momentum spread with AI also a clear tailwind for this well positioned tech leader," said analysts led by Daniel Ives.

The analysts believe increased market and mind share is happening for CrowdStrike among new and existing customers as the company's product suite continues to expand across the enterprise landscape over the next 12 to 18 months.

Mind share is term used to describe a brand's awareness in consumers' minds.

The analysts added that the company has seen strength driven by continued platform adoption with healthy momentum in Cloud, Identity, and Logscale along with better-than expected trends in Data Protection and Charlotte AI, which saw considerable strength in deal flow in the most recent quarter and, the analysts believe, accelerated in the October quarter.

The analysts noted that CrowdStrike has taken strategic steps to integrate AI across its portfolio to capitalize on elevated demand for advanced cyber solutions to protect IT and AI infrastructure across the tech stack.

"To this point we believe the Street is underestimating the growth potential for CrowdStrike as a second/third derivative beneficiary of the AI Revolution and this speaks to our core bullishness in the name continuing from current levels. In a bull case scenario we can see CRWD shares hitting $700+ over the next year as the company executes on its core growth strategy," said Ives and his team.

The analysts continue to believe that the cybersecurity subsector could be an outperformer within the broader tech space.

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