Shares of CrowdStrike (CRWD -6.44%) surged higher on Monday. The company's stock had gained 3.7% as of 10:50 a.m. ET but had been up as much as 5.4% earlier in the day. The move up comes as the S&P 500 and Nasdaq Composite had gained 0.2% and 0.3%, respectively.
The cybersecurity company received a rating upgrade from analysts at BTIG, and that seemed to be driving investor optimism.
A buy rating
Brokerage and investment bank BTIG upgraded its CrowdStrike rating from neutral to buy on Tuesday. The analysts there reportedly believe that there is a clearer picture of CrowdStrike's revenue growth over the next two years. They see a potential 2.5% to 8% upside to current Wall Street forecasts for the company's fiscal 2027 annual recurring revenue (ARR), a key metric. The company's fiscal 2027 will end in January 2027.
NASDAQ: CRWD
Key Data Points
The research note from BTIG said that CrowdStirke "has demonstrated its dominance in the core endpoint security target market," according to a report from Investing.com. BTIG believes ARR growth will accelerate in the second half of 2026, reaching $6.2 billion to $6.6 billion in FY27 and eventually reaching $10 billion before CrowdStrike's own target of 2031.
CrowdStrike has recovered
CrowdStrike suffered a major outage last year that led to millions of systems crashing. It's been called the largest in history. The company's stock dropped nearly 50% after the event, and its reputation suffered. However, it worked diligently to right the wrong; its stock has now fully recovered and the majority of analysts following the company rate the stock as a buy. However, it is quite expensive, currently trading at a forward price-to-earnings ratio (P/E) of more than 100.
