Cloudflare (NET – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Shaul Eyal from TD Cowen reiterated a Buy rating on the stock and has a $162.00 price target.
Maximize Your Portfolio with Data Driven Insights:
- Leverage the power of TipRanks' Smart Score, a data-driven tool to help you uncover top performing stocks and make informed investment decisions.
- Monitor your stock picks and compare them to top Wall Street Analysts' recommendations with Your Smart Portfolio
Shaul Eyal has given his Buy rating due to a combination of factors that highlight Cloudflare’s strong performance and growth prospects. The company reported remarkable revenue growth of 27% year-over-year in the fourth quarter of 2024, surpassing market expectations. Additionally, Cloudflare demonstrated a significant increase in high-value customers, with a 47% rise in those spending more than $1 million annually, indicating robust demand for its services.
Cloudflare’s operational metrics also showed improvement, with gross margins exceeding long-term targets and a notable increase in sales productivity. The company is effectively targeting enterprise customers through strategic initiatives, resulting in accelerated adoption by large clients. Furthermore, Cloudflare is well-positioned to capitalize on trends in security and AI, which are areas of frequent discussion with its customer base, enhancing its future growth potential. These factors collectively underpin Eyal’s optimistic outlook and the raised price target.
Eyal covers the Technology sector, focusing on stocks such as Fortinet, Palo Alto Networks, and Cloudflare. According to TipRanks, Eyal has an average return of 27.5% and a 70.16% success rate on recommended stocks.
In another report released today, JMP Securities also reiterated a Buy rating on the stock with a $180.00 price target.