Key insights
- KeyBanc reiterates Sector Weight rating on CrowdStrike (CRWD) due to its participation in Anthropic's Project Glasswing, viewing CRWD as the biggest beneficiary given its vulnerability management and patching capabilities. The analyst suggests internal use of Mythos by Glasswing partners could enhance platform security. CRWD also announced an additional $500M stock buyback program, signaling confidence. Overall, this news is mildly bullish for CRWD.
Investing.com - KeyBanc reiterated a Sector Weight rating on CrowdStrike Holdings (NASDAQ:CRWD) following the company’s inclusion in Anthropic’s Project Glasswing consortium.
Anthropic announced Project Glasswing, a consortium of 12 partners including CrowdStrike and Palo Alto Networks, to leverage the capabilities of the Mythos Preview model for cyber defense. Anthropic’s Mythos model is designed to find and exploit software vulnerabilities but will not be publicly released due to security concerns.
KeyBanc analyst Eric Heath stated the firm views CrowdStrike as the greatest beneficiary of the project. The analyst cited the company’s vulnerability management offering, Falcon for IT patching capabilities, services including managed detection and response and incident response, pen-testing, and its position as a leader in cloud-native application protection platforms.
The analyst noted CrowdStrike has slightly more breadth and depth of capabilities compared to Palo Alto Networks, which also participates in the consortium. KeyBanc highlighted CrowdStrike’s vulnerability management and patching capabilities as differentiators.The cybersecurity leader maintains a strong financial position with a market cap of $107.34 billion and revenue growth of 21.71% over the last twelve months. According to InvestingPro analysis, the stock currently appears overvalued relative to its Fair Value. InvestingPro offers 10 additional exclusive tips for CRWD, providing deeper insights for investors.
The firm stated that if all Glasswing partners use Mythos strictly for internal purposes rather than providing services to end-customers, they will have a more secure platform than their competitors.
In other recent news, CrowdStrike Holdings announced an expansion of its stock buyback program, with the Board of Directors authorizing an additional $500 million, bringing the total authorization to $1.5 billion. The company has already repurchased 413,130 shares of its Class A common stock, totaling $150.6 million in aggregate purchases. Additionally, CrowdStrike and HCLTech have launched Continuous Threat Exposure Management services, enhancing their partnership to address security exposures across various digital platforms. In analyst updates, Cantor Fitzgerald reiterated an Overweight rating on CrowdStrike, highlighting the launch of new capabilities within Falcon Cloud Security. Meanwhile, Wolfe Research upgraded CrowdStrike to Outperform, citing valuation as a key factor and setting a price target of $450.00. This upgrade came after a decline in CrowdStrike shares following leaked news of Anthropic’s AI model, Claude Mythos. DA Davidson analysts expressed skepticism about the immediate impact of AI models on cybersecurity vendors, suggesting benefits might not be reflected in financial results until later this year.
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