This 5 Star Analyst is Bullish on Crowdstrike

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Needham analyst Alex Henderson is bullish on CrowdStrike due to its significant upside.

Needham analyst Alex Henderson is bullish on CrowdStrike due to its significant upside, according to YahooFinance.

Investors seemed to be anticipating bad news as shares sold off by almost 8 percent in the two sessions prior to the earnings report. However, there was nothing to worry about as the company reported strong Q3 earnings. CrowdStrike operates in the cybersecurity industry.

Here are the numbers from the company's Q3 earnings:

  • CrowdStrike reported revenue of $232.46 million, an 85.8 percent YoY increase and beating analyst expectations by $18.1 million.
  • EPS beat estimates by $0.08 and came in at $0.08.
  • Annual recurring revenue came in at $907.4 million, increasing by 81 percent YoY and beating analyst expectations of $853.8 million.

For quarter 4, the company anticipates revenue between $245.5 to $250.5 million and earnings between 8 and 9 cents per share. Analyst forecasts expect $231.4 million and adjusted EPS of $0.01. Henderson was expecting “another strong beat and raise.” Henderson believes CrowdStrike has more upside than other cybersecurity companies such as Zscaler, Cloudflare, and Okta.

“We are long-term buyers of CRWD for multi-year outperformance,” Henderson said. “While a period of consolidation is possible, we think CRWD is a unique investment vehicle with exceptional long-term value potential. CrowdStrike does security right, it really does “Stop the Breach.” We believe this is going to be a major company, and we recommend investors buy these shares, establish a core position and add on any weakness.”

Shares surged 13 percent following the earnings on Thursday and the stock is up 223 percent year-to-date.

Henderson raised his price target from $170 to $190.

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