In a report released today, Shaul Eyal from TD Cowen reiterated a Buy rating on Cloudflare (NET – Research Report), with a price target of $162.00.
Shaul Eyal has given his Buy rating due to a combination of factors that highlight Cloudflare’s strong growth potential and strategic initiatives. The company has shown significant improvement in product traction and market penetration, particularly within the enterprise sector. This is supported by an increase in sales productivity and a robust pipeline, which positions Cloudflare well for future growth. Additionally, the company’s focus on AI and its ability to integrate AI capabilities across its network present new opportunities for expansion.
Cloudflare’s ambitious goal of achieving $5 billion in annual recurring revenue by 2028, alongside its target operating model with 25% free cash flow margins, further underscores its growth trajectory. The company’s strategic moves, such as enhancing its enterprise focus and leveraging Pool of Funds contracts, are expected to drive platform adoption and customer retention. With a total addressable market projected to grow significantly by 2028, Cloudflare’s execution and strategic initiatives justify the Buy rating and the $162 price target.
According to TipRanks, Eyal is a top 25 analyst with an average return of 23.9% and a 65.39% success rate. Eyal covers the Technology sector, focusing on stocks such as Check Point, Palo Alto Networks, and Cloudflare.
In another report released on March 10, Stifel Nicolaus also maintained a Buy rating on the stock with a $175.00 price target.
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