Cloudflare price target raised to $200 from $150 at TD Cowen

TD Cowen raised its price target on Cloudflare stock (NYSE:NET) to $200 from $150 on Monday, while maintaining a Buy rating on the internet security company. The new target comes as the stock trades near its 52-week high of $181.81, having delivered an impressive 127.5% return over the past year. According to InvestingPro analysis, the stock currently appears overvalued relative to its Fair Value.

The research firm cited strong demand for Cloudflare’s platform despite macroeconomic uncertainty, noting that the mission-critical nature of internet and security services continues to outweigh broader economic concerns.

TD Cowen addressed last week’s brief service outage, explaining it was caused by a third-party issue and was quickly resolved without lasting impact. The firm noted that Cloudflare received positive feedback from customers for its prompt handling of the situation.

The analysts see a clear path for Cloudflare to reach $5 billion in annual recurring revenue, with acceleration expected in fiscal year 2026 compared to fiscal year 2025.

The price target increase represents a significant 33% boost from TD Cowen’s previous valuation of Cloudflare shares, reflecting the firm’s continued confidence in the company’s growth trajectory.

In other recent news, Cloudflare announced the pricing of $1.75 billion in convertible senior notes due 2030, with the transaction expected to close on June 17, 2025. The company plans to use the proceeds for general corporate purposes, including potential acquisitions and strategic transactions. In connection with this offering, Cloudflare will enter into capped call transactions to offset potential dilution from the notes. Meanwhile, Cloudflare faced a widespread service outage affecting numerous services, but JMP Securities maintained a Market Outperform rating on the company. JMP analyst Trevor Walsh reiterated a price target of $180 despite the technical issues. Additionally, Cloudflare’s shareholders approved executive pay and re-elected directors during the 2025 Annual Meeting of Stockholders. Stacey Cunningham, Mark Hawkins (NASDAQ:HWKN), and Carl Ledbetter were elected as Class III directors until 2028. The ratification of KPMG LLP as the independent registered public accounting firm was also approved. These developments highlight recent activities and decisions impacting Cloudflare.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.