Guggenheim analyst John DiFucci downgraded CrowdStrike Holdings (NASDAQ: CRWD) from Buy to Neutral.

The analyst comments: "We are downgrading CRWD to Neutral from Buy due to likely resistance to new deals in the near-term as a result of anticipated fallout from the apparent quality assurance issue that caused a massive disruption of IT systems across the globe, in addition to what we always saw as risk in F4Q consensus estimates, especially ARR. So, with the stock still trading at the highest multiple of recurring revenue across our entire Software coverage (i.e., 18.5x EV/Recurring Revenue), we are stepping away for the time being. We have been criticized by some investors over more than the last year of how we could have a Buy on CRWD as its multiple seemed to defy gravity relative to others, but our response was always the same. Sometimes, there's significant incremental value in high multiple stocks, especially if a company has a track record of impeccable execution making an even better future at least plausible, if not likely."

For an analyst ratings summary and ratings history on CrowdStrike Holdings click here. For more ratings news on CrowdStrike Holdings click here.

Shares of CrowdStrike Holdings closed at $304.96 yesterday.