Actions of Mass coup (NASDAQ: CRWD) rose today after the company received a bullish note from an analyst. CitigroupThe analyst built on earlier comments on Wall Street that the company appears to have escaped the worst of the backlash following its July incident, when a faulty software update disrupted flights and banking operations and affected other industries.
At 11:11 a.m. ET, CrowdStrike shares were up 4.5% on the news.
Wall Street believes the worst is over for CrowdStrike
This morning, Citi was the latest Wall Street firm to issue a bullish rating on the stock following the Fal.Con conference earlier this week. Citi praised management's transparency in the previous software update debacle and cited evidence of customer resilience, noting that customer churn is lower than expected and that the company's cybersecurity company They have done a good job of maintaining their prices.
Citi reiterated its buy rating on CrowdStrike with a $300 price target. While that implies a mere 4% upside for the stock, the note is clearly positive, as CrowdStrike is still trading below where it was before the incident.
Earlier in the week, several other research firms, including DA Davidson, Evercore ISI, Jefferiesand Truist They all reiterated their buy ratings on the stock and said the negative customer reaction following the software incident had largely passed.
Can CrowdStrike keep winning?
It's certainly a good sign that CrowdStrike has survived the worst of the incident, but the stock remains expensive and growth was slowing before the outage.
If the company really gets back on track, the stock should rise, but investors should keep in mind the valuation, as price-sales ratio was 20. Expect volatility in stocks to continue.
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Citigroup is an advertising partner of The Ascent, a Motley Fool Company. Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CrowdStrike, Jefferies Financial Group and Truist Financial. The Motley Fool has a Disclosure Policy.
Why CrowdStrike Shares Rose Today Originally published by The Motley Fool
