Cloudflare downgraded to Neutral from Outperform at Baird

Baird downgraded Cloudflare (NET) to Neutral from Outperform with a price target of $140, up from $125. The firm says “relatively full valuations” of the larger security stocks imply a more balanced risk/reward at current share levels. With preliminary 2025 outlooks “likely to be prudent,” initial expectations could reset lower, posing near-term risk to the high-multiple names, the analyst tells investors in a research note. Baird believes the current large-cap multiples embed historically wide premiums, reflecting some market dislocation. It sees a balanced risk/reward near-term and prefers to wait for more attractive entry points. As such, it downgraded three names in the group.