Analyst Note| Malik Ahmed Khan |
We are maintaining our $163 fair value estimate for narrow-moat CrowdStrike after the firm closed out its second quarter of fiscal 2024 with financial results largely in line with our prior estimates. While near-term macro pressures continue to affect customer buying decisions, we believe investors should focus their attention on CrowdStrike’s long-term market opportunity which continues to expand as the firm invests in growing areas such as identity, cloud security, and security operations. We reiterate our view that in a security landscape littered with bad actors using emerging technologies such as generative artificial intelligence for nefarious purposes, customers will expand their usage of security vendors. In turn, we believe CrowdStrike’s Falcon platform is well-positioned to capitalize on the increased appetite for security solutions over the medium to long term. With shares trading slightly up afterhours, we believe CrowdStrike is fairly valued and is trading in the 3-star range.