Cybersecurity company CrowdStrike (CRWD. US) closed down 13.46% on Monday, continuing the decline caused by last week's downtime.
Guggenheim and BTIG downgraded the stock's rating and informed investors that; quot; Let the dust settle; quot;。
Guggenheim rates CrowdStrike from& quot; Buy& quot; Reduced to& quot; Neutral& quot;。 Analyst John Difucci stated:; quot; Due to significant quality assurance issues leading to large-scale disruptions in global IT systems, it is expected that new transactions may face resistance in the short term. Therefore, among the software stocks we cover, CrowdStrike still has the highest multiple based on recurring revenue (enterprise value/recurring revenue reaching 18.5 times), and we are temporarily staying away from this stock& amp;quot;
DiFucci stated that this outage has affected Microsoft (MSFT. US) Windows computers worldwide and disrupted the global economy, which could have a negative impact on CrowdStrike's business, even if only temporarily.
&Amp; quot; The company's response to this matter was impressive, but it still caused significant disruption to businesses (and people) around the world; DiFucci continued& amp;quot; Restoring its reputation may take more time, at least in the short term, and may affect the signing of new business contracts& amp;quot;
BTIG also downgraded CrowdStrike rating from& after the outage; quot; Buy& quot; Reduced to& quot; Neutral& BTIG analyst Gray Powell said; quot; There is more negative feedback than expected& amp;quot;