Piper Sandler recently upgraded CrowdStrike, a global cybersecurity company, to overweight from neutral. This decision was made in light of the recent crises surrounding the global tech outage that affected millions of computers running Microsoft’s Windows operating system. Despite the company’s shares plunging 43% over the past month, Piper Sandler believes that investors should take advantage of the event and buy the dip. Analyst Rob Owens lowered his price target for CrowdStrike by $20 to $290, implying a 30.6% upside. This downgrade was due to estimate reductions on the stock, but he still sees shares as trading at a compelling risk/reward level.
Owens praised CrowdStrike for its handling of the global outage and its efforts to preserve customer relationships. The company’s strong cash flow generation and insurance for incidents like this should help mitigate costs associated with potential litigation, such as the one with Delta Air Lines seeking damages. Despite the near-term challenges the company faces, Owens remains optimistic about CrowdStrike’s long-term prospects and recommends investors to consider building positions at current levels.
Morgan Stanley identified Taiwan Semiconductor as a top pick for investors, maintaining an overweight rating on the stock. The chipmaker has been under pressure this quarter, with the U.S.-listed stock down 14.9% quarter to date. However, Morgan Stanley believes that the recent dip in Taiwan Semiconductor shares presents a buying opportunity. The bank has a price target of 1,200 Taiwanese dollars for the stock, implying a 36.4% upside.
Analyst Charlie Chan highlighted TSMC’s quality and defensive nature during a semi downcycle, making it an attractive investment opportunity. The confirmation of price hikes and ongoing AI capex strength are expected to be key catalysts for the company. Following the recent broad selloff in the sector, Morgan Stanley views TSMC as an attractive investment at 16x their 2025 EPS estimate, considering its higher quality company operations and financial outlook.
Analysts are bullish on CrowdStrike and Taiwan Semiconductor, despite the recent challenges faced by both companies. The upgrades and positive outlooks reflect confidence in the long-term potential of these stocks, even in the face of short-term obstacles. Investors may want to consider these analyst calls and do their own research before making investment decisions in these companies.