UPDATE: CrowdStrike Holdings (CRWD) PT Lowered to $225 as Morgan Stanley Sees Increasingly Crowded Market

Morgan Stanley analyst Hamza Fodderwala lowered the price target on CrowdStrike Holdings (NASDAQ: CRWD) to $225.00 (from $247.00) after the company reported solid Q3 results with ending ARR growth of +67% YoY, above consensus and slightly ahead of buyside expectations between 65-66% YoY.

However, the analyst maintained an Underweight rating due to the limited detail non-core EDR revenue and an increasingly crowded market. He stated "we continue to see an unfavorable setup into '22". "On the back of Q3 results where revenue was ~$19M ahead of the midpoint of the guided range, management raised FY22 revenue guidance by $30M at the midpoint, now implying 63.5% YoY growth at the midpoint. The magnitude of the raise is lower vs. the $44M increase which management took up the FY guide by following 2Q results. The lower guidance raise is an area to monitor given a seasonally stronger 2H and in contrast to management commentary regarding a favorable spending environment and robust pipeline."

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