Cloudflare price target raised to $165 from $130 at UBS

UBS raised the firm’s price target on Cloudflare (NET) to $165 from $130 and keeps a Neutral rating on the shares. Cloudflare’s Q4 results were possibly a “shade light” given the year-to-date stock performance, but featured a healthy margin beat, record large and total customer adds, and the first uptick in net recurring revenue since the third quarter of 2023, and management cited “encouraging signs that confidence is beginning to return,” particularly around security modernization and AI projects in the U.S., the analyst tells investors in a research note. The second half-weighted guidance requires a fairly material step up in Q3, which looks “somewhat aggressive,” the firm says, adding that it thinks the stock is appropriately valued.