It’s time to buy shares of cybersecurity company CrowdStrike , according to BMO Capital Markets. Analyst Keith Bachman initiated the stock at outperform. His price target of $120 implies a 14.9% upside. Bachman said the endpoint market, which is a specific area within the security world focused on end and entry points to user devices such as phones and laptops, will continue to evolve. That continued evolution will allow CrowdStrike to differentiate from Microsoft and legacy cybersecurity companies. He also said endpoint could remain the company’s key offering while its portfolio expands. “We believe that CrowdStrike offers best-in-class endpoint security capabilities and an expanding platform that will help CrowdStrike compete against Microsoft and other vendors,” Bachman said in a note to clients Wednesday. “Further, we think CrowdStrike will benefit from consolidation, particularly as organizations adopt XDR.” There is concern that Microsoft could pressure competitors by using bundle prices to win companies looking to save money. But Bachman said CrowdStrike has attributes that are difficult to replicate such as a cloud-native platform and scalable architecture, on top of its potential expansions, that will allow it to compete. He added that consolidation will help CrowdStrike, as companies seek to use one company for multiple needs. Around 20% of customers have purchased seven or more models out of 22 available, which Bachman sees as a sign that they could buy more of its products going forward. Bachman noted the outlook for security budgets within businesses should be more resilient than other parts of information technology, though they are still not completely immune from the impacts of a worsening economy. Taken together, Bachman said the company could reach $5 billion in annual recurring revenue by fiscal 2026 as he expects 32% year over year growth in 2024, 26% year over year growth in 2025 and 21% year over year growth in 2026. The stock gained 1% in premarket trading. It shed 48.6% in 2022. — CNBC’s Michael Bloom contributed to this report.