From Morningstar: 2024-07-25 05:51:00

Investor confidence in CrowdStrike Holdings (CRWD) has dropped by over 20% after a global IT outage. Despite maintaining a $300 Fair Value Estimate and Narrow Economic Moat rating, Morningstar sees potential short-term costs for the firm. Customer concerns may lead to discounts and credits, but long-term growth prospects remain strong.

Morningstar still views CrowdStrike as undervalued and provides a Fair Value Estimate of $300 with a 3-star rating. The firm’s robust platform, customer relationships, and growth potential from security industry consolidation support confidence in its long-term success. Short-term challenges may include customer retention efforts and potential discounts offered.

While short-term costs are anticipated for CrowdStrike due to the recent IT outage, long-term growth prospects remain positive. Management will likely need to address customer concerns and potential discounts may be necessary to retain clients. Morningstar’s base case does not foresee significant customer churn or major revenue reduction in the medium-to-long term.

Key Morningstar Metrics for CrowdStrike Holdings:
Fair Value Estimate: $300.00
Morningstar Rating: ★★★
Morningstar Economic Moat Rating: Narrow
Morningstar Uncertainty Rating: High

Please note: The information provided is for educational and informational purposes only. It is not an inducement to buy or sell securities, but rather an opinion on the current situation of CrowdStrike Holdings. Always consult a financial professional before making investment decisions.



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