CrowdStrike (CRWD) management sees "materially stronger" demand into H2 with the company raising its fiscal 2027 net new annual recurring revenue guidance by $52 million, despite a thin ARR beat in the Q1, Morgan Stanley said in a Thursday note.

Morgan Stanley said management has pulled forward investor expectations for a stronger H2, aided by AI-driven demand, record pipeline commentary, and broad-based platform momentum.

With CrowdStrike's stock trading lower following its "relatively skinnier" net new ARR beat in Q1, Morgan Stanley said it views any weakness as a potential opportunity to buy shares.

"These Q1 results reinforce our view that CrowdStrike is increasingly benefiting from the convergence of AI adoption, platform consolidation, and growing enterprise demand for cybersecurity as foundational AI infrastructure," according to the note.

Morgan Stanley raised its price target to $690 from $610 and maintained its overweight rating.

Price: 680.00, Change: -67.61, Percent Change: -9.04