Cloudflare (NET) has received a new Buy rating, initiated by Oppenheimer analyst, Param Singh.
Param Singh has given his Buy rating due to a combination of factors that highlight Cloudflare’s strategic advancements and growth potential. The company’s “platformization” strategy, which simplifies the integration of new modules, is a significant driver of its success. This approach enhances the adoption of Cloudflare’s security and developer tools, contributing to sustained growth and competitive positioning.
Additionally, the recent appointments of Mark Anderson and CJ Desai to the leadership team bolster confidence in Cloudflare’s capability to expand its offerings effectively. Singh also notes that Cloudflare’s revenue growth targets are achievable, with potential for further upside due to increased adoption of security modules. Despite concerns about valuation compared to competitors, Singh believes Cloudflare’s ability to maintain a 30% compound annual growth rate supports the Buy rating.
In another report released on March 18, Morgan Stanley also initiated coverage with a Buy rating on the stock with a $154.00 price target.
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