CrowdStrike's (CRWD) near-term opportunity appears fully priced into its shares, which have rebounded by more than 50% from their April lows, Morgan Stanley said in a Monday note.
Given the recent run, the shares could be down after Q2 results, similar to what happened after impressive Q1 results, the Morgan Stanley analysts said. Investor expectations are high for H2 as the company recovers from last year's post-outage impacts, and this "begs the question of what magnitude of beats would be required to satiate investor appetites over the next twelve months," the analysts said.
Crowdstrike's long-term opportunity remains robust, with its competitive positioning strong and continued momentum in its emerging product portfolio, the analysts said.
In the short-term, however, the analysts said they were "moving to the sidelines awaiting better entry points to build positions."
Morgan Stanley revised the stock's rating to equal-weight from overweight and changed the price target to $495 from $490.
Price: 475.54, Change: -2.91, Percent Change: -0.61
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