Cloudflare upgraded to Buy from Sell at Goldman Sachs

Goldman Sachs analyst Gabriela Borges double upgraded Cloudflare (NET) to Buy from Sell with a price target of $140, up from $77. The firm sees “several positive catalysts” for the company to drive improving fundamentals and stock outperformance in 2025. Cloudflare began making more meaningful changes to its go to market in the spring of 2023, led by Marc Boroditsky, who joined Cloudflare in November 2022 as Chief Revenue Officer, the analyst tells investors in a research note. Goldman believes Cloudflare will benefit from ramping sales and marketing productivity through 2025. The firm’s industry conversations suggest that artificial intelligence is moving more materially from training to inferencing use cases, consistent with Cloudflare’s Q3 comments.