U.S. bank Wells Fargo (WFC) has named cybersecurity firm Cloudflare (NET) a “top pick” for 2025.
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Specifically, Wells Fargo named NET stock its top software infrastructure pick for 2025, citing the company’s strong market position and promising outlook for revenue growth and margin expansion. Cloudflare specializes in cloud-based cybersecurity applications.
In a note to clients, Wells Fargo said that Cloudflare is, “well-positioned to consistently outperform revenue expectations throughout 2025.” The analysts added that they anticipate a stronger spending environment on cybersecurity in 2025, driven by the adoption of generative artificial intelligence (AI).
Greater Spending
Wells Fargo also highlighted a recent survey that found an expected 6.3% year-over-year increase in information technology (IT) budgets for 2025. The bank said the survey further found that “AI Security” ranked as the highest spending priority for the private sector.
Wells Fargo also pointed out that cybersecurity has historically been a priority within IT budgets, and that is unlikely to change in 2025 given the current geopolitical uncertainties. NET stock has risen 43% over the last 12 months.
Is NET Stock a Buy?
Cloudflare stock has a consensus Moderate Buy rating among 20 Wall Street analysts. That rating is based on nine Buy, eight Hold, and three Sell recommendations issued in the last three months. The average NET stock price target of $104.26 implies 8.43% downside risk from current levels.
