Piper Sandler analyst Rob D. Owens has reaffirmed his Overweight rating on CrowdStrike Holdings, Inc (CRWD), maintaining a price target of $290. This comes despite a recent outage that impacted Delta Air Lines, leading to a lawsuit filed by the airline against CrowdStrike. The outage, which occurred in July, reportedly cost Delta between $350 million and $500 million, rendering 60% of its critical applications inoperable.
While Owens acknowledges the potential impact of the outage on CrowdStrike’s earnings, he believes that the impact on the current quarter’s revenue will be minimal. He expects the company’s non-GAAP net revenue retention rate (NNARR) to fall short of expectations and predicts a cautious adjustment to full-year guidance.
In a positive development, CrowdStrike and Microsoft are collaborating to enhance security and resilience for their joint customers. The two companies are hosting a Windows Endpoint Security Ecosystem Summit to discuss these efforts. Meanwhile, KeyBanc analyst Eric Heath has refuted reports suggesting CrowdStrike’s interest in acquiring Action1 for $1 billion.
Despite the recent challenges, CrowdStrike continues to be optimistic about its future prospects. The company is actively working on improving its systems and collaborating with key partners to enhance security. The upcoming Windows Endpoint Security Ecosystem Summit with Microsoft is a testament to this commitment.
As of Monday’s market close, CRWD stock was trading down 0.57% at $269.98.
