Morgan Stanley analysts downgraded CrowdStrike (NASDAQ:CRWD) shares to Equal Weight from Overweight with a price target lowered by $11 to $167 per share.

The analysts are “cautious” on CRWD into this week’s earnings print.

“Consensus estimates for 2H/CY24 rebound appear high in light of a more difficult demand environment,” they said in a client note.

Along these lines, they believe CrowdStrike may be prompted to cut its ARR guidance again.

Moreover, the analysts argue that risk-reward seems more balanced now after +45% YTD run.

“Our cautious view is based on more recent checks and data points over the last month, citing:

Further slowdown in key industry verticals;
Cloud consumption headwinds; and
Limited upside to FCF margin.”
CRWD shares are down 2.6% in early Monday trade.