Goldman Sachs Upgrades CrowdStrike Sending Shares Flying

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Shares of cybersecurity company CrowdStrike were on the rise on Tuesday after the company received an upgrade from Goldman Sachs.

The firm upgraded its target price on CrowdStrike to $285 per share from $241 in an analyst note, citing unprecedented demand for cybersecurity increasing with the war in Ukraine as a reason for the upgrade.

Share rose 3.19% on the news, but the stock is still down 26% from its all-time closing high in November.

Goldman analysts said the stock is a promising buy given greater global demand for cybersecurity services as companies recognize “the potential for exposure to threats as a result of attacks” related to Russia’s war with Ukraine.

Other cybersecurity companies have also seen their stock price rise among increased demand for their services. Palo Alto Networks is up about 12% for the year, while Mandiant is up about 27% year-to-date, for example.

“We continue to view CRWD as well positioned in the sweet spot of demand ahead of accelerating deterioration of the threat environment,” analysts said.

Spending on CrowdStrike-produced cybersecurity software Endpoint and XDR will remain a high priority within the security industry, the Goldman Sachs analysts added.

The company also remains one of the fastest-growing within Goldman Sach’s coverage, and continues to execute above expectations, analysts continued.

“As a result, we believe CRWD is one of the best-positioned vendors within our coverage universe to benefit from demand ahead.”

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.