Cloudflare price target lowered to $55 from $65 at Stifel

Stifel analyst Adam Borg lowered the firm’s price target on Cloudflare to $55 from $65 and keeps a Hold rating on the shares after delivering a "disappointing" print and guidance. The company’s Q1 top-line miss, fourth quarter of decelerating dollar-based net retention rate, and fiscal year guidance cut are due to intensifying macro-headwinds and GTM productivity issues, the analyst tells investors. Despite these factors, there were some positives in the quarter, including record profitability, ongoing traction with Zero-Trust solutions and Generative-AI companies, and forward guidance that contemplates continued profitability gains, Stifel says.