CrowdStrike Stock Jumps After DoD Authorization

Analysts and options traders are chiming in with bullish sentiment

Deputy Editor
Apr 8, 2022 at 10:18 AM
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CrowdStrike Holdings Inc (NASDAQ:CRWD) is in the spotlight today, after news that the company secured a Provisional Authorization to Operate (P-ATO) at Impact Level 4 (IL-4), enabling it to protect U.S. Department of Defense (DoD) and Defense Industrial Base (DIB) customers. At last glance, CRWD was up 3.8% to trade at $225.18. 

In response, Deutsche Bank raised its price target to $270 from $240, while Jefferies upped its price objection to $265 from $250. Jefferies noted that "CRWD instilled deeper confidence in the future ARR runway and ability to blur the lines between cyber and infra," while Cowen and Company stated that "CRWD entered FY23 with the strongest pipeline it has ever carried into a new year." Later in the morning, Baird lifted its price target from $225 to $275, while Canaccord Genuity chimed in with its own to $260 from $238. 

Options traders are joining in the optimism today, with 14,000 calls across the tape straight out of the gate -- four times what's typically seen at this point. The weekly 4/8 230- and 225-strike calls are the most popular, with new positions being bought to open at both. Both of these contracts expire at the end of the day today. 

On the charts, the $230 level -- which coincides with its 200-day moving average -- still lingers above as overhead pressure. Year-to-date, the equity is up 10.2%. 

 

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