Somewhat like Palantir Technologies, the valuation of cybersecurity firm CrowdStrike Holdings is becoming controversial on Wall Street. Morgan Stanley on Monday downgraded CrowdStrike stock, joining Piper Sandler in the past week.
However, Wedbush and Citigroup recently raised their price targets on the cybersecurity stock.
On the stock market today, CrowdStrike stock dipped 1.8% to near 470 in early trading, signaling a possible test of the 10-week moving average. CrowdStrike stock has advanced nearly 40% in 2025, but sank 6.9% last week amid a bad week for cybersecurity stocks.
Morgan Stanley analyst Keith Weiss on Monday lowered his rating on CRWD stock to equal weight from overweight citing valuation.
"CrowdStrike remains a long-term market leader in cybersecurity, well positioned for the increasing platform consolidation we expect in the industry, with direct exposure to AI tailwinds," said Weiss in a report. "However, with the stock up 50% from April lows and the multiple now reflecting a significant rebound in growth, the near-term opportunity appears fully priced in the shares."
Last week, Piper Sandler analyst Rob Owen cut his rating on CRWD stock to neutral from overweight.
Meanwhile, Wall Street continues to monitor the impact of 2024's global IT outage on CrowdStrike's customer contract renewals. CrowdStrike reported first-quarter earnings that topped estimates while revenue met views. The cybersecurity firm's sales guidance for CrowdStrike stock missed Wall Street targets.
After the Q1 report, Bank of America downgraded CrowdStrike stock to neutral from buy.
Delta IT Outage Lawsuit
Meanwhile, CrowdStrike still faces litigation from Delta Air Lines in connection with the IT outage, which happened in mid-July 2024.
The company is building a broad, threat-detection cybersecurity platform. It monitors endpoints as well as web/email gateways, web application firewalls and cloud business workloads.
CrowdStrike Technical Factors
Meanwhile, technical ratings on CRWD stock are mixed. CrowdStrike's Relative Strength Rating stands at 89 out of a best-possible 99.
CRWD stock holds an Accumulation/Distribution Rating of D. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral.
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity, quantum computing and cloud computing.
