Core Viewpoint - UBS maintains a positive outlook on the cybersecurity sector despite an 11% decline since November 2025, which is lower than the IGV index's 7% drop, with expectations that key trends will continue into 2025 [1] Industry Trends - Cybersecurity budgets are expected to grow faster than overall IT spending, with M&A trends continuing and AI-driven security and identity security becoming core themes [1] - A survey of Chief Information Security Officers (CISOs) indicates strong growth in cloud security (62%), identity security (59%), and SecOps & Analytics (55%), while firewall spending is more cautious (33%) [2] Key Themes and Controversies - The cybersecurity landscape faces challenges, with ransomware incidents increasing by 47% and severe zero-day vulnerabilities occurring frequently [3] - Core themes for 2026 will focus on AI for Security, Security for AI, and Identity Security, with leading companies identified as CrowdStrike, Palo Alto Networks, and SentinelOne [3] - There is growing concern among investors regarding the resilience of cybersecurity software against competition from AI-native companies, which may impact industry valuation multiples [4] Performance Adjustments and Valuation - Cybersecurity stocks performed in line with the software industry in 2025, with the IGV index rising by 1% while the cybersecurity sector remained flat [5] - Cybersecurity companies enjoy a slight valuation premium, with a median EV/Sales ratio of 5.6x compared to 5.0x for the software industry [5] - UBS has lowered revenue and current billings expectations for Tenable for 2026 due to trends in long-term contracts and prepaid billings, while maintaining expectations for Q4 2025 [5]

Company Overview - CrowdStrike Holdings, Inc. (CRWD) is experiencing a business rebound following an IT outage in mid-2024, supported by a favorable demand environment [1] Investment Strategy - Narweena, an asset manager led by Richard Durant, focuses on identifying market dislocations due to misunderstandings of long-term business prospects, aiming for excess risk-adjusted returns through secular growth opportunities in markets with barriers to entry [1] - The research process emphasizes company and industry fundamentals to uncover unique insights, with a high risk appetite and long-term investment horizon targeting deeply undervalued stocks [1] Market Dynamics - An aging population with low growth and stagnating productivity is expected to create new investment opportunities, contrasting with past trends [1] - Many industries may face stagnation or secular decline, which could paradoxically enhance business performance by reducing competition [1] - Conversely, some businesses may encounter rising costs and diseconomies of scale, while asset-light businesses increasingly dominate economies, leading to a decline in infrastructure investment needs [1] - A large pool of capital is pursuing a limited set of investment opportunities, resulting in rising asset prices and compressed risk premia over time [1] Leadership Background - Richard Durant holds undergraduate degrees in engineering and finance from the University of Adelaide and an MBA from Nanyang Technological University, along with having passed the CFA exams [1]

Group 1 - Citigroup raised the target price for CrowdStrike from $595 to $610 [1] - Citigroup increased the target price for Fortinet from $83 to $85 [1]

Core Insights - CrowdStrike Holdings, Inc. is a prominent player in the cybersecurity sector, known for its advanced cloud-native Falcon platform aimed at protecting critical enterprise risk areas [1] - The recent strategic alliance with Nord Security is expected to enhance cybersecurity for small and midsize businesses (SMBs) by integrating AI-driven solutions with secure access and credential management [1] Financial Performance - KeyBanc downgraded CrowdStrike from an Overweight rating to a Sector Weight rating on January 12, 2026, when the stock price was $470.61, reflecting concerns about the company's financial performance [2] - CrowdStrike has a negative price-to-earnings (P/E) ratio of approximately -371.72, indicating a lack of profitability [2] - The partnership with Nord Security could improve financial prospects by expanding market reach and introducing Falcon Go and Falcon Enterprise through NordLayer, facilitating e-commerce access for SMBs [2] Market Strategy - The collaboration aims to reduce cost and complexity barriers, making it easier for SMBs to access robust cybersecurity solutions, which may lead to increased investment in CrowdStrike's offerings [3] - The partnership with Pax8 enhances managed service provider (MSP) offerings by launching an add-on for Falcon Next-Gen SIEM, combining the Falcon platform's capabilities with Nord Security's solutions [3] - CrowdStrike's price-to-sales ratio is approximately 25.36, indicating that investors are willing to pay a premium for its sales, reflecting confidence in its growth potential [3] Customer Engagement - Offering 90 days of free access for qualifying customers could further drive adoption and revenue growth [4] - CrowdStrike maintains a low debt-to-equity ratio of 0.20, demonstrating a conservative approach to debt management [4] - The current ratio of approximately 1.81 suggests a strong ability to cover short-term liabilities with short-term assets [4] - The partnership with Nord Security is anticipated to redefine cybersecurity for SMBs, potentially enhancing CrowdStrike's market position and financial performance [4]

Core Insights - CrowdStrike (CRWD) has agreed to acquire SGNL to enhance its identity security capabilities, particularly for AI-driven enterprises, integrating SGNL's Continuous Identity technology into its Falcon platform [1][9] Group 1: Acquisition Details - The acquisition aims to provide real-time access control based on risk signals, moving away from static privileges [2][9] - The deal is expected to close in the first quarter of fiscal 2027, positioning CrowdStrike to capitalize on the growing identity security market [4][9] Group 2: Market Growth Potential - The identity security market is projected to grow from approximately $29 billion in 2025 to $56 billion by 2029, indicating a significant opportunity for CrowdStrike's offerings [3] - If customer adoption increases due to rising AI-driven identity risks, identity security could become a substantial growth area for CrowdStrike [4] Group 3: Competitive Landscape - Competitors such as Palo Alto Networks (PANW) and Okta Inc. (OKTA) are also pursuing acquisitions to expand their platforms and innovate in AI [5][6] - Palo Alto Networks' acquisition of Chronosphere for $3.35 billion aims to enhance its capabilities in the observability market [5] Group 4: Financial Performance and Estimates - CrowdStrike's shares have decreased by 7.5% over the past three months, compared to a 10.5% decline in the Zacks Security industry [7] - The Zacks Consensus Estimate for CrowdStrike's fiscal 2026 earnings indicates a year-over-year decline of 5.6%, while fiscal 2027 earnings are expected to grow by 28.7% [14]

Core Viewpoint - CrowdStrike Holdings, Inc. is a leading player in the cybersecurity industry, known for its Falcon platform and comprehensive security solutions, despite a recent downgrade by KeyBanc [1][6] Company Developments - KeyBanc downgraded CrowdStrike from an Overweight rating to a Sector Weight rating, with the stock priced at $470.61 [2][6] - Institutional investors have shown strong interest in CrowdStrike, with Benjamin Edwards Inc. increasing its investment by 31.6%, holding 8,303 shares valued at approximately $4.1 million [2] - Laurel Wealth Advisors LLC expanded its holdings in CrowdStrike by 54,635.9%, now owning over 4.2 million shares valued at $2.2 billion, indicating strong belief in the company's potential [3][6] - Norges Bank made a substantial new investment in CrowdStrike during the second quarter, valued at $1.6 billion, showcasing confidence in the company's long-term growth prospects [4][6] Market Performance - CrowdStrike's stock is currently priced at $470.61, reflecting a 1.45% increase, with a market capitalization of approximately $117.26 billion [5]

Core Insights - CrowdStrike and Nord Security have formed a strategic partnership aimed at enhancing cybersecurity for small and midsize businesses (SMBs) by integrating CrowdStrike's AI-native Falcon platform with Nord Security's secure access and credential management solutions [1][2]. Partnership Overview - The collaboration seeks to provide enterprise-grade protection that is simple and accessible for SMBs, addressing the challenges posed by limited budgets and cybersecurity expertise [2][3]. - The partnership aims to fill the gap in cybersecurity for SMBs, as only 36% of these businesses are investing in new tools and a mere 11% have adopted AI-powered defenses [2]. Innovations Introduced - Two key innovations are introduced through this partnership: 1. The combination of CrowdStrike's Falcon platform with Nord Security's secure access technology, which is designed to be fast to deploy and simple to manage [3]. 2. The launch of Falcon Go, an AI-powered solution tailored for SMBs, and Falcon Enterprise, which will be available through NordLayer, enhancing the ease of access to enterprise-grade protection [7]. Company Background - CrowdStrike is recognized as a global leader in cybersecurity, offering a cloud-native platform that protects critical areas of enterprise risk, including endpoints and cloud workloads [4]. - The Falcon platform utilizes real-time indicators of attack and threat intelligence to provide accurate detections and automated protection [5][6]. - Nord Security is known for its advanced cybersecurity solutions, including NordVPN and NordLayer, and has been acknowledged by leading tech sites and IT security specialists [8].

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.Considering buying CRWD stock? Here’s what analysts think: Read This Next: Photo via Shutterstock ...

Core Viewpoint - CrowdStrike Holdings Inc. is acquiring SGNL, an identity management startup, for $740 million to enhance its position in the Next-Gen Identity Security market [1][2]. Group 1: Acquisition Details - The acquisition is expected to close in the first quarter of FY 2027, with the purchase price primarily in cash and a portion in stock [2]. - The CEO of CrowdStrike, George Kurtz, emphasizes the importance of identity security in the AI era, stating that AI agents require protection as they operate with superhuman speed and access [3]. Group 2: Market Potential - The identity security market is projected to grow from approximately $29 billion in 2025 to $56 billion by 2029, indicating significant growth potential for CrowdStrike's new offerings [3]. Group 3: Analyst Reception - Analysts have positively received the acquisition, with firms like Jefferies and Barclays reiterating their Buy ratings, and Berenberg Bank upgrading CrowdStrike to Buy due to its reasonable valuation and long-term benefits from the SGNL deal [4]. Group 4: Company Overview - CrowdStrike is an American cybersecurity technology company based in Austin, Texas, providing endpoint security, threat intelligence, and cyberattack response services [5].

Group 1 - CrowdStrike Holdings, Inc. (NASDAQ:CRWD) has experienced a significant decline in stock price, falling almost 100 points from its November highs, which has surprised market analysts [1] - The company specializes in providing cloud-based cybersecurity solutions, offering protection for endpoints, cloud systems, identities, and data [2] Group 2 - While CrowdStrike is recognized for its potential as an investment, there are other AI stocks that are perceived to offer greater upside potential and carry less downside risk [3]