CrowdStrike's (CRWD) platform has favorable artificial intelligence positioning, increasing use of emerging modules and improving endpoint trends, Morgan Stanley said in a research report Tuesday.

CrowdStrike is one of the most expensive cybersecurity names, the firm said, but it thinks the company is best positioned to outperform in the coming years, with opportunities to expand share in endpoint security.

Recent dislocation in the shares provides a buying opportunity, especially with fiscal Q4 earnings and the management's confidence in positioning, the brokerage said.

A cleaner investment story compared with security peers experiencing mergers and acquisitions over the next 6 months and a more defensive market positioning makes CrowdStrike one of its top picks, Morgan Stanley said.

The brokerage upgraded CrowdStrike to overweight from equal-weight and raised its price target to $510 from $487.

Price: 435.87, Change: +1.74, Percent Change: +0.40