Morgan Stanley downgrades CrowdStrike (CRWD.US) rating to "hold": Current valuation already reflects short-term opportunities.

Morgan Stanley has downgraded its stock rating on cybersecurity company CrowdStrike (CRWD.US) from "outperform" to "hold" but has raised its target price on the stock from $490 to $495. Morgan Stanley analysts, led by Keith Weiss, stated that after experiencing approximately 50% increase in the stock price and continued growth expectations, they have chosen to temporarily hold their position as the current valuation is already quite full. However, analysts point out that CrowdStrike remains an attractive long-term investment story, but the anticipated accelerated growth in the second half of the year now seems to be fully reflected in the stock price. Analysts state that CrowdStrike remains a long-term market leader in the cybersecurity sector, positioned favorably in their expected industry platform consolidation trend, and directly benefiting from the advantages brought by artificial intelligence. However, considering the stock has risen nearly 50% since its low point in April, the current valuation reflects a significant rebound in growth, and short-term opportunities seem to have already been factored in the stock price. Analysts noted that the second-quarter earnings report may not be a catalyst to change the investment thesis, as investors are clearly more focused on the second half of the year, customer commitment program (CCP) renewal rates, and the impact of Falcon Flex contracts on revenue recognition and margins still lack clear visibility. Analysts added that while they still see long-term growth potential, in the current context where risks and rewards are more balanced, they are choosing to hold off temporarily and wait for a better entry point to build their position.