Analysts Applaud CrowdStrike Holdings' (CRWD) SGNL Deal, Reiterate Buy Ratings

CrowdStrike Holdings Inc. (NASDAQ:CRWD) is among the best software infrastructure stocks to buy according to hedge funds. On Thursday, January 8, the company announced an agreement to acquire SGNL, an identity management startup, for $740 million, according to CNBC. The company believes the acquisition will bolster its position in the Next-Gen Identity Security space, complementing its Falcon platform intelligence.

The deal is expected to be closed in the first quarter of FY 2027, and the purchase price is expected to be paid predominantly in cash, with a portion in stock.

The CNBC report notes that CrowdStrike’s CEO and founder, George Kurtz, sees this as an opportunity to further penetrate the identity security market, which IDC expects to grow from approximately $29 billion in 2025 to $56 billion by 2029. The CEO further said,

AI agents operate with superhuman speed and access, making every agent a privileged identity that must be protected. With SGNL, CrowdStrike will deliver continuous, real-time access control that eliminates the known and unknown gaps from legacy standing privileges. We’re disrupting the premise of modern privilege and access – for every identity, human or machine. This is identity security built for the AI era.

The deal was well received by analysts, with many, including those at Jefferies and Barclays, reiterating their Buy ratings after the news. In fact, Berenberg Bank upgraded CrowdStrike Holdings Inc. (NASDAQ:CRWD) to Buy, citing the stock’s reasonable valuation following the recent pullback and the long-term benefits of the SGNL deal.

CrowdStrike Holdings Inc. (NASDAQ:CRWD) is an American cybersecurity technology company. Based in Austin, Texas, the company provides endpoint security, threat intelligence, and cyberattack response services.

While we acknowledge the potential of CRWD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.