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On Friday, Cantor Fitzgerald analyst Yi Fu Lee raised the price target for Cloudflare Inc . (NYSE: NYSE:NET) shares, adjusting the figure to $149.00 from the previous target of $111.00. The firm maintained a Neutral rating on the stock. The new target aligns with the stock’s strong momentum, having gained nearly 70% over the past year and currently trading near its 52-week high of $144.30. According to InvestingPro analysis, the stock appears overvalued relative to its Fair Value. Cloudflare has demonstrated an increased confidence in IT spending, particularly in the United States, as reflected in the company’s recent performance and future investment plans.
Cloudflare’s management has observed a trend of enterprises investing in security, infrastructure modernization, and AI. This trend contributed to a notable rise in sales close rates and a shortening of sales cycles. The company also reported double-digit year-over-year growth in sales productivity, with InvestingPro data showing impressive revenue growth of 30% in the last twelve months and maintaining strong gross profit margins of 77.5%.
The positive developments in Cloudflare’s sales performance have led to increased confidence from management, prompting plans to ramp up investments, particularly in sales and marketing (S&M), as the company enters the 2025 calendar year. This strategic move is expected to further bolster Cloudflare’s market position and revenue growth.
Management also highlighted that 80% of the Annual Contract Value (ACV) quota for calendar year 2025 is already covered by Account Executives (AEs) currently employed at the company. This coverage is seen as an improvement compared to the previous couple of years, indicating a stronger sales foundation for Cloudflare as it moves forward.
The revised price target by Cantor Fitzgerald reflects the firm’s acknowledgment of Cloudflare’s solid sales execution and its potential for continued growth in the rapidly evolving IT landscape.
In other recent news, Cloudflare Inc. has been the subject of several analyst upgrades and downgrades. Needham analysts raised their price target for the company to $185, citing an increase in customer volume and quality. Similarly, Bernstein SocGen Group increased its price target from $80 to $100, following robust Q4 2024 earnings that aligned with FY25 consensus expectations. BTIG maintained its Neutral rating on Cloudflare after the company reported a 26.9% year-over-year increase in revenue, surpassing both BTIG’s and the Street’s estimates. JMP Securities raised its price target to $180, reflecting confidence in Cloudflare’s unique position within the cybersecurity sector.
In other recent developments, Cloudflare announced the appointment of Michelle Zatlyn as Co-Chair of the Board. Zatlyn will serve alongside current CEO Matthew Prince and will continue her operational responsibilities within the company. This corporate governance update was disclosed in a recent 8-K filing with the Securities and Exchange Commission.
These developments highlight the company’s strong performance and its strategic positioning for future growth. As analysts have noted, Cloudflare’s significant customer base growth, operational efficiency, and innovative product development contribute to its positive outlook. However, it’s important to note that these are analyst expectations and not a guarantee of future performance.
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