CrowdStrike: Deutsche Bank sees AI fueling cyber demand ‘tsunami’, upgrades to Buy

 Deutsche Bank lifted its rating for CrowdStrike to Buy from Hold and raised its DCF-based price target to $300 in a note to clients on Monday, noting that investors still underappreciate how much AI will expand the cybersecurity market.

Analyst Brad Zelnick said CrowdStrike’s $565 billion total addressable market estimate for 2034, unveiled at its Fal.Con event, looks conservative.

“We increasingly believe the company’s $565bn TAM (CY34) provided at Fal.Con will prove conservative given a tsunami of cyber demand materializing as the AI frontier advances,” Zelnick wrote.

“Not all cyber companies will participate, and we contend those most obviously levered to AI warrant a substantial premium, just as seen with others in our coverage like PLTR and SNOW,” he added.

Deutsche Bank sees CrowdStrike’s role as a trusted consolidator, its endpoint leadership and its proximity to the AI token stream driving outsized value capture. The company still holds only a mid-single-digit market share, and the bank expects AI to accelerate consolidation.

Zelnick said CrowdStrike’s endpoint leadership is a distinct advantage, as endpoints are where AI operates, whether physical, virtual or agentic. He pointed to several recent quarters of core acceleration as evidence.

The analyst also highlighted the company’s AI products, including Guardian and SafeMind, along with its hiring of AI chief Bartley Richardson and partnerships with Nvidia and CoreWeave.

Deutsche Bank expects CrowdStrike to reach its $10 billion annual recurring revenue target for fiscal 2030 comfortably ahead of schedule, with compound growth above 20% for many years.