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On Thursday, Cantor Fitzgerald maintained a Neutral rating on Cloudflare Inc . (NYSE:NET) shares, with a price target of $149.00. Cloudflare, known for its cloud services and impressive 77.32% gross profit margins, held its 2025 Analyst Day at the New York Stock Exchange, where the company also had the honor of ringing the closing bell. During the event, Cloudflare, now valued at $41.18 billion, presented its growth metrics, which are on an accelerating trend with revenue growing at 28.76% year-over-year, and discussed its hiring strategy. InvestingPro analysis suggests the stock is currently trading above its Fair Value, with 14 additional key insights available to subscribers.
The company has revised its revenue target for the calendar year 2028 (CY28) to $5 billion, a one-year delay from its previous goal. This new target is significantly higher than the current projections by Cantor Fitzgerald and other analysts, with InvestingPro data showing current annual revenue at $1.67 billion. The adjustment to the revenue target reflects Cloudflare’s confidence in its future performance and the company’s strategic initiatives aimed at driving growth, supported by its strong current ratio of 2.86x and moderate debt levels.
Cloudflare’s growth is attributed to securing larger deals, increased spending by existing customers, and enhanced sales productivity. The firm’s analysts believe that Cloudflare is well-positioned to capitalize on the advancements in artificial intelligence (AI), particularly in the areas of inference and agency. These AI-driven growth opportunities are expected to benefit from Cloudflare’s edge computing capabilities and its expanding range of products.
The company’s diverse product set, which continues to evolve, is considered a key factor in its ability to take advantage of the long-term growth potential presented by AI. This strategic positioning is anticipated to support Cloudflare’s growth trajectory in the years to come.
Cantor Fitzgerald’s reiterated Neutral rating indicates a cautious but stable outlook for Cloudflare’s stock, with the $149.00 price target suggesting that the firm sees limited upside potential from the current market price. The rating and price target reflect the firm’s analysis of Cloudflare’s market position, growth prospects, and the recent announcements made during its Analyst Day.
In other recent news, Cloudflare Inc. has been the focus of several analyst updates following its latest financial performance and strategic initiatives. The company reported a 27% year-over-year revenue increase for the fourth quarter of 2024, surpassing expectations and prompting TD Cowen to raise its price target to $162 while maintaining a Buy rating. Similarly, RBC Capital Markets increased its target to $170, citing Cloudflare’s strong year-end performance and effective go-to-market strategy as key factors. Mizuho (NYSE:MFG) Securities also adjusted its outlook, raising the price target to $160 due to the company’s robust revenue growth but maintaining a Neutral rating due to valuation concerns.
Stifel analysts have upheld a Buy rating with a $175 target, emphasizing Cloudflare’s expanding product portfolio and opportunities in AI and Zero-Trust as significant growth drivers. Despite high valuations, Stifel remains optimistic about Cloudflare’s potential for sustained growth. Mizuho, on the other hand, recently reduced its price target to $140 from $160, maintaining a Neutral rating, as they assess the company’s valuation amidst a competitive market landscape. Investors are keenly observing Cloudflare’s upcoming Investor Day, expected to provide further insights into its strategic vision and financial outlook.
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