Crowdstrike slips as Baird cuts target, sees potential lock-up pressure
Shares of Crowdstrike (CRWD) are moving lower after an analyst from Baird cut his price target on the stock ahead of the company's third quarter earnings report on December 5. WHAT'S NEW: Before the market open, Baird analyst Jonathan Ruykhaver maintained a Neutral rating on Crowdstrike but cut his price target on the shares to $65 from $75, saying he expects the company to continue to show "robust growth" in its Q3 report. The analyst said his view on overall competitive positioning in the endpoint security market and ability to executive continues to be unchanged, and he still sees Crowdstrike as "well positioned" to take "significant" market share. Ruykhaver noted, however, that he believes the current valuation is pricing in a roughly 50% top-line compound annual growth rate over the next four years and for the stock to rise materially from current levels, he believes the company would have to "meaningfully" exceed these expectations. The analyst also noted that Crowdstrike's lockup period is set to expire on December 9. That the expiration may weigh on the stock, as the company sold only a relatively small portion of its total shares through its initial public offering, with only 20.7M shares currently outstanding, Ruykhaver argues. PRICE ACTION: In afternoon trading, Crowdstrike shares are down about 6.8% at $54.06.