Morgan Stanley downgrades CrowdStrike ahead of earnings

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The analyst lowered his price target to $167 from $178, which suggests the stock could still climb more than 11%.

Morgan Stanley is worried about CrowdStrike ahead of the company's latest earnings report this week. Analyst Hamza Fodderwala downgraded the cybersecurity company to equal weight from overweight and lowered his price target to $167 from $178. Fodderwala's new target suggests the stock could still climb more than 11.65% in the next year.

mountain CrowdStrike in past 6 months Fodderwala cited three factors for the bank's cautious view: Further slowdown in company's key industry targets, including tech and retail: Companies such as Target and Home Depot, which are among CrowdStrike's largest customers, are spending more cautiously, likely resulting in smaller deal sizes. Headwinds in cloud consumption: The pace of recovery in companies' cloud optimization efforts remains uncertain.

 

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