In the world of stocks and investments, analysts play a crucial role in assessing the potential of different companies. Recently, Piper Sandler made headlines by upgrading CrowdStrike, a global cybersecurity company, to overweight from neutral. This move by Piper Sandler comes amidst the crises surrounding the global tech outage, which has significantly impacted CrowdStrike’s stock performance in the past month.
Analyst Rob Owens of Piper Sandler believes that CrowdStrike has the potential to make a strong comeback from the recent challenges it has faced. Despite lowering the price target by $20 to $290, Owens still sees an upside potential of 30.6% for the stock. The recent software update issued by CrowdStrike, which led to global outages across various industries running Microsoft’s Windows operating system, has caused the stock to plummet by 43% in the past month.
Owens commended CrowdStrike for its handling of the global outage and for maintaining strong customer relationships. He also highlighted the company’s robust cash flow generation and insurance coverage for such incidents, which should help in mitigating costs related to the Delta lawsuit. Despite the near-term uncertainties surrounding litigations and settlements, Owens remains optimistic about the long-term prospects of CrowdStrike.
Another noteworthy development in the stock market is Morgan Stanley’s endorsement of Taiwan Semiconductor as a top pick for investors. The chipmaker has been facing pressure in the current quarter, leading to a 14.9% decline in its U.S.-listed stock. However, Morgan Stanley maintains an overweight rating on Taiwan Semiconductor, citing its quality and defensive nature during a semi downcycle.
Analyst Charlie Chan of Morgan Stanley points out that Taiwan Semiconductor’s price hike confirmation and ongoing AI capex strength are key catalysts for its future growth. Despite the recent selloff in the tech sector, Chan believes that Taiwan Semiconductor is an attractive investment opportunity at 16x the 2025 EPS estimate. With a price target of 1,200 Taiwanese dollars, implying a 36.4% upside, Taiwan Semiconductor appears to be poised for a rebound in the coming months.
Overall, the recent analyst calls and chatter on Wall Street reflect the dynamic nature of the stock market. While CrowdStrike faces short-term challenges following the global tech outage, investors are advised to consider the long-term potential of the company. Similarly, Taiwan Semiconductor’s resilience and strategic positioning in the semiconductor industry make it an appealing choice for investors looking for growth opportunities in the tech sector.
The stock market is a volatile environment where timely analysis and informed decisions can make a significant difference in investment outcomes. By keeping abreast of analyst calls and market trends, investors can navigate the ups and downs of the stock market more effectively and optimize their investment portfolios for long-term success.