In a report released yesterday, Adam Borg from Stifel Nicolaus maintained a Buy rating on Cloudflare (NET – Research Report), with a price target of $175.00.
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Adam Borg has given his Buy rating due to a combination of factors that highlight Cloudflare’s strong performance and growth potential. The company closed 2024 on a high note, surpassing key metrics and expectations, which indicates robust business momentum. Additionally, Cloudflare’s success with significant deals and its expanding portfolio signal future opportunities for growth.
Looking forward, while the company’s profitability guidance for FY25 is slightly conservative due to strategic investments, these investments are expected to rekindle growth. Borg is optimistic about Cloudflare’s capacity to leverage trends like Zero-Trust and AI, foreseeing substantial growth and margin expansion. Despite the stock’s premium valuation, Borg believes Cloudflare’s innovative technology and strategic dynamics position it well for continued outperformance, prompting an increase in the target price to $175.
Borg covers the Technology sector, focusing on stocks such as Fortinet, Palo Alto Networks, and Okta. According to TipRanks, Borg has an average return of 16.6% and a 76.67% 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.