Cloudflare stock maintains Market Outperform rating at Citizens on new security services

Investing.com - Cloudflare Inc. (NYSE:NET), trading near its 52-week high of $230.1 and showing an impressive 95% year-to-date return, maintained its Market Outperform rating from Citizens, which reiterated its $250.00 price target on the stock. According to InvestingPro analysis, the stock appears to be trading above its Fair Value.

The firm’s decision follows Cloudflare’s announcement of a new suite of incident response and security services under its Cloudforce One division, combining threat intelligence with network-native defense capabilities.

Citizens views the announcement as an interesting move by Cloudflare to monetize its proprietary network traffic-based edge by competing directly against managed secure service providers.

The firm noted this strategy mirrors recent moves by other Secure Access Service Edge (SASE) vendors, specifically mentioning Zscaler as having made similar competitive adjustments.

Citizens also suggested the new security offerings appear to be a means for Cloudflare to strengthen its security credentials and position itself as a legitimate cybersecurity player, despite having a considerable portion of its product portfolio that is not security-related.

In other recent news, Cloudflare, Inc. is expected to exceed consensus revenue for the third quarter, according to Guggenheim, which has maintained its Sell rating and a price target of $111.00 on the stock. Guggenheim also anticipates that Cloudflare will raise its full-year 2025 revenue guidance. The company is actively collaborating with major payment networks, including Visa, Mastercard, and American Express, to develop an authentication layer for AI-powered shopping through the Trusted Agent Protocol. Additionally, Cloudflare has launched new solution bundles for its PowerUP Partner Program, aimed at helping partners provide integrated security and management services. In a move to support global education, Cloudflare has partnered with UNICEF’s Giga initiative to track internet connectivity in schools worldwide using its Speed Test solution. These efforts are part of Cloudflare’s broader strategy to address digital complexity and improve connectivity.

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