On January 13, BTIG analyst Gray Powell reiterated a Buy rating on CrowdStrike Holdings, Inc. (NASDAQ:CRWD) with a $640.00 price target. Firm analysts stated that CrowdStrike's recently announced acquisitions of SGNL and Seraphic Security make strategic sense.
BTIG highlighted that these acquisitions directly target the identity market and protect AI workloads. The acquisition of SGNL, which provides identity security and verification to permit real-time access to systems and data, is for $740 million. Terms for the Seraphic Security acquisition were not disclosed. Both transactions are anticipated to close in the first fiscal quarter of 2027.
According to Powell, these deals mark CrowdStrike's bigger push into the broader identity market as enterprises increasingly prioritize identity protection amid rising AI adoption. The company has been expanding its identity capabilities, including ITDR and Just In Time credentials, into a comprehensive platform.
Discussions with Investor Relations reveal that the company's near-term focus is on capturing incremental security budgets in the PAM market, especially as enterprises seek new tools to protect AI workloads.
"Longer term, CRWD has its sights across the identity market and sees potential to become a player in the IGA market. In our opinion, this will take longer to play out – potentially a couple of years. In this note, we highlight our insights on recent transactions and thoughts on CRWD's broader platform strategy. Reiterate Buy," Powell said.
CrowdStrike Holdings, Inc. is a leader in AI-driven endpoint and cloud workload protection.