Analyst Andrew Nowinski from Wells Fargo reiterated a Buy rating on Cloudflare (NET – Research Report) and keeping the price target at $200.00.
Andrew Nowinski has given his Buy rating due to a combination of factors including Cloudflare’s ambitious revenue targets and strong growth across its product lines. The company aims to achieve $5 billion in annual recurring revenue by 2028, which represents a compound annual growth rate of 28% from 2024 to 2028. This target, although pushed out by a year, demonstrates Cloudflare’s potential to remain a high-growth company.
Additionally, Cloudflare’s Act 1 solutions, primarily their CDN services, continue to grow and remain relevant, highlighted by a significant deal following a DDoS attack. The Act 2 solutions, including Cloudflare One and Zero Trust/SASE, experienced a 43% growth in annual contract value in 2024, showing an acceleration from the previous year. Furthermore, the Act 3 solutions, particularly the Workers developer platform, saw a 76% year-over-year growth in annual contract value, driven by an increasing number of developers and its unique serverless architecture. These factors collectively underpin Nowinski’s positive outlook on Cloudflare’s stock.
According to TipRanks, Nowinski is a 5-star analyst with an average return of 13.9% and a 53.26% success rate. Nowinski covers the Technology sector, focusing on stocks such as CyberArk Software, Cloudflare, and Dynatrace.
In another report released today, TD Cowen also reiterated a Buy rating on the stock with a $162.00 price target.
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