Loop Capital cautious on 2023 outlook for Cloudflare

Loop Capital keeps a Hold rating on Cloudflare with a $61 price target, up from $52, ahead of its Q1 results. The quarter may come in at least in-line to more likely upside to Street’s current forecast, but the firm must strike a cautious tone regarding 2023 Outlook amid a moderation in the overall IT spending, the analyst tells investors in a research note. Loop Capital added that post-Silicon Valley Bank closure, Cloudflare’s relatively more significant exposure to venture-stage companies could also potentially risk the firm’s and the Street’s 2023 estimates.