Narrow-Moat CrowdStrike Hits Bullseye to Close Fiscal 2023; Maintain $156 FVE; Shares Undervalued

We are maintaining our $156 fair value estimate for narrow-moat CrowdStrike after the firm closed out its fiscal 2023 with strong results offset by continued macro pressures. While near-term macro tightness continues to remain front of mind for many investors, we’d highlight the tremendous opportunity CrowdStrike has in front of it as endpoint security continues to gain wallet share of the overall enterprise security spend. We believe the firm, with its sticky Falcon platform which exhibits potent network effects, is well-positioned to capitalize on the increased number of endpoints every business has due to the continued digitization of IT architecture. With shares up more than 5% afterhours, we believe there is still upside for investors looking to get high-quality SaaS exposure.