On Monday, KeyBanc raised its rating on CrowdStrike from Sector Weight to Overweight. The firm said some see Anthropic’s new advanced artificial intelligence model as a cybersecurity risk. However, KeyBanc believes this will actually boost demand for cybersecurity.
KeyBanc analyst Eric Heath set a price target that suggests about 21% growth from Monday’s closing price. He pointed to changes in competition and in enterprise security budgets. The upgrade comes after a volatile period for cybersecurity stocks. This volatility was sparked by talk about Anthropic’s Mythos AI model. Anthropic has said the model is too advanced for general release. It is only available for corporate previews.
At first, the market worried that Mythos could weaken existing cybersecurity platforms by enabling more complex, harder-to-detect cyberattacks. Those concerns have eased somewhat. Top security companies, including CrowdStrike, are now working with Anthropic. They are testing the model to assess risks and developing ways to defend against threats that such AI models might introduce. KeyBanc believes these partnerships show that advanced AI capabilities will drive greater security spending, not less.
Heath described Mythos as the catalyst for improving cybersecurity budgets. He said a clear AI threat and more awareness among executives should lead to higher corporate security spending. As a top endpoint and cloud security platform, CrowdStrike stands to benefit the most from these changes.
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