CrowdStrike Holdings Inc. (NASDAQ:CRWD) rose over 3.5% on Monday morning after the cybersecurity firm enjoyed a rare double endorsement.

Wolfe Research upgraded the stock to outperform, and Morgan Stanley named it a top pick — but the stock is still down roughly 20% year-to-date.

Analysts are praising CrowdStrike while Iranian hackers escalate cyberattacks.

Palo Alto Networks (NASDAQ:PANW) threat intelligence unit has identified more than 60 Iran-aligned hacktivist groups active since President Trump’s Operation Epic Fury launched on Feb. 28.

One of those groups, Handala, launched a wiper attack on Stryker Corp. (NYSE:SYK), the $132 billion medical device maker, destroying internal servers and permanently erasing data across the company’s network.

Russian hackers operating in support of Tehran have separately disrupted U.S. surveillance networks. The trend is evident enough to make bank bosses nervous.

JPMorgan Chase & Co. (NYSE:JPM) CEO Jamie Dimon, for example, expects banks to be likely targets, calling cyber risk “one of the highest risks banks bear.”

Whether the U.S. has a strong enough defense against such attacks is unclear, considering the lead cyber defense agency, CISA, is reportedly operating at just 38% staffing due to the ongoing government shutdown.

CrowdStrike’s Adam Meyers warned that the reconnaissance and disruption activity the firm is tracking from Iranian-aligned groups typically escalates into more damaging attacks as a conflict drags on.

Prediction Markets Say The War Drags On

With federal defenses strained, markets are pricing in a prolonged conflict.

Polymarket traders give just a 31% chance of a U.S.-Iran ceasefire by April 30. That rises to only 48% by the end of May and 72% by December 31. The contract has generated over $62 million in volume.

The conflict is expanding. Iran-backed Houthi rebels launched their first missile at Israel over the weekend, and this morning, Trump escalated his threats to Iran, demanding that they open the Hormuz Strait.

Wolfe analyst Joshua Tilton argued Monday that CrowdStrike benefits from escalating cyber risks rather than facing disruption from AI. The consensus analyst price target sits around $505, well above current levels.

The longer the conflict persists, the harder it may become for enterprises to justify cutting cybersecurity budgets.

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