Morgan Stanley is “tactically cautious” into Crowdstrike’s investor day on September 18, contending that consensus estimates remain high and citing the fact that the firm does not expect positive financial updates given that it is only two months since the global outage. However, after pulling its FY25 free cash flow guidance due to uncertainty around flexible payment plans, the firm looks for some clarity on the near- to mid-term free cash flow trajectory, sees downside support around $220, and argues that the longer-term story remains intact. The firm maintains an Overweight rating and $325 price target on Crowdstrike shares.
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