CrowdStrike Earnings: A Bullseye to Finish Fiscal 2024 as Sales From New Verticals Ramp Up Rapidly

We are raising our fair value estimate for narrow-moat CrowdStrike materially to $300 from $220. The main driver behind our fair value hike is a revised outlook on the firm’s long-term growth prospects as customers increasingly consolidate their cybersecurity spending on large vendors such as CrowdStrike. Increased adoption of CrowdStrike’s newer offerings, including cloud, identity, and security operations, is implied in our new growth outlook. We believe CrowdStrike, much like its large security peers, stands to materially benefit as customers increasingly turn to its platform for needs beyond its traditional endpoint security business. We believe this consolidation of security spending will also allow CrowdStrike to fortify its economic moat by increasing its penetration into a customer’s ecosystem, making churn less likely.