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CrowdStrike Rallies After Morgan Stanley Names It a Top Pick Following ARR Milestone

A high-profile Morgan Stanley upgrade reframed the stock’s premium as warranted by accelerating growth.

Overview

  • CRWD rose roughly 17% over the first six trading days of March after a modest earnings beat and firm guidance fueled renewed buying.
  • Morgan Stanley upgraded the shares to Overweight, set a $510 price target, and cited platform momentum including strong share gains in endpoint security.
  • CrowdStrike reported Q4 revenue of $1.31 billion, full‑year revenue of $4.81 billion, and ended the year with $5.25 billion in ARR driven by a record $1.01 billion in net new ARR.
  • Citi trimmed its target to $525 while keeping a Buy rating, reflecting ongoing valuation debate as the stock trades near 15x projected 2027 sales with roughly 70% Buy ratings tracked by FactSet.
  • The company announced a partnership to run its Falcon platform natively on Schwarz Digits’ STACKIT European sovereign cloud to help customers meet EU data‑sovereignty and regulatory requirements.