10:38 AM EDT, 07/22/2024 (MT Newswires) -- CrowdStrike Holdings' ( CRWD ) financial outlook faces some uncertainty over the next one to two quarters following last week's global technology outage, though the cybersecurity company can likely limit "reputational damage" in the longer term, Morgan Stanley said Monday.

"While outages from SaaS vendors aren't new and typically cause modest impacts, the magnitude of this global outage was different and one of the largest in history, with multiple airlines, banks and healthcare [organizations] impacted," Morgan Stanley said in a note to clients.

The brokerage expects a 2% headwind to the company's full-year annual recurring revenue outlook, while its management is likely to "modestly" lower its revenue guidance next month, according to the note.

"Longer term, we believe the reputational damage will be limited given a swift response and encouraging early feedback from customers/partners," Morgan Stanley said.

The brokerage reduced its price target on the CrowdStrike ( CRWD ) stock to $396 from $422, with an overweight rating.

The company's shares were down nearly 12% in recent trading.

Price: 268.80, Change: -36.16, Percent Change: -11.86