From Financial Modeling Prep: 2024-12-17 11:43:00

Stifel analysts upgraded Cloudflare (NYSE:NET) to Buy from Hold, with a new price target of $136, up from $95. The upgrade was based on confidence in Cloudflare’s ability to execute and capitalize on its expanding total addressable market.

Cloudflare is expected to maintain 25-30% annual revenue growth and improve profitability. Recent leadership enhancements, improved sales productivity, and success in enterprise markets are driving optimism.

The company’s growth avenues in Application, Network, Zero Trust, and Developer Services segments are gaining momentum. Early adoption of AI inference on Cloudflare’s low-latency network offers significant upside potential.

Despite its premium valuation, Cloudflare is seen as a standout investment due to strong execution, exposure to technology trends, and self-driven improvements. Stifel analysts view Cloudflare as a best-in-class asset with substantial long-term growth opportunities and high upside potential.



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