Yahoo Finance Piper Sandler downgrades CrowdStrike stock to Neutral
Piper Sandler downgrades CrowdStrike (CRWD) shares from Overweight to Neutral, the firm maintaining its $400 per share price target on the cybersecurity company's stock. Market Domination's Josh Lipton and Seana Smith review the note from Piper Sandler analyst Rob Owens and his call regarding CrowdStrike's valuation.
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This post was written by Luke Carberry Mogan.
Video transcript
Piper sailor downgrading crowd strike from overweight to neutral sinus dos risk reward after a strong run.
And to be clear, this is Piper's Rob Owens.
We've been covering this space a long time covering cyber security names for a long time.
When Rob speaks, I listen, Sandra, that's what I'm trying to say.
Ok. And he basically says this is a valuate.
I mean, this is a valuation call tells his clients listen.
He looks at the valuation relative to the software companies.
He covers north of 75 billion in market cap current valuation.
He says placed his crowd strike with the highest 2025 multiple on sales and among the highest on free cash flow.
In other words, he thinks it looks pricey.
Yeah, exactly.
And I think that's everyone's take away from this call and you can see you listen and the street listens too because you can see that in the pressure that we are seeing on shares today off just about 1.5%.
But remember this is a stock that had been up more than 50% year to date.
It's rallied just 10% since the announcement of its inclusion within the S and P. So clearly, there has been a lot of excitement, a lot of that driven by some of those underlying factors, fundamental factors that Rob Owens does remain very bullish on still going forward.
But again, saying that current valuation levels, it might be due for just a bit of a break here.
But going forward, he's saying that he's taking an intermission prior to the second act to put it in his words, but he still believes that strong fundamental performance is going to continue here and sees a number of catalysts ahead.
