Gold prices bounce off 3-week lows; demand likely longer term
On Friday, RBC Capital Markets analyst Matt Hedberg increased the price target on Cloudflare Inc . (NYSE: NYSE:NET) shares, raising it to $155 from the previous $140, while reiterating an Outperform rating. The upgrade comes as Cloudflare, currently valued at $45.7 billion, demonstrates impressive quarterly performance with revenue growth of 27.79% and industry-leading gross profit margins of 76.88%. According to InvestingPro analysis, the company’s enterprise growth and significant contract wins have contributed to a strong 36.23% price return over the past six months.
Cloudflare recently secured a five-year deal worth $130 million for its Workers platform, which was notably finalized in less than a month. Additionally, the company achieved a seven-year, $12.7 million win for its Secure Access Service Edge (SASE) offering against next-generation competitors. These successes underscore Cloudflare’s competitive edge in the enterprise space, supported by its strong financial health with a current ratio of 3.2, indicating robust liquidity. For deeper insights into Cloudflare’s financial health and 13 additional ProTips, visit InvestingPro.
The analyst also pointed out the absence of any growth deceleration when comparing the recent quarter to the fourth quarter of 2024, as well as no evident impact from macroeconomic pressures. Hedberg approved of Cloudflare’s conservative approach to its calendar year 2025 guidance, suggesting that this strategy positions the company well for the second half of 2025.
Hedberg’s increased price target reflects a growing confidence in Cloudflare’s short-term estimates and its long-term market opportunity. The analyst’s commentary indicates that RBC Capital Markets sees a positive trajectory for Cloudflare, backed by its strong enterprise momentum and strategic business wins.
In other recent news, Cloudflare Inc. has reported its first-quarter 2025 earnings, revealing a 27% year-over-year revenue increase to $479.1 million, surpassing the anticipated $469.65 million. The company also met earnings per share expectations with $0.16. This performance aligns with Cloudflare’s historical trend of meeting or slightly surpassing financial forecasts, reinforcing investor confidence. Additionally, Cloudflare signed its largest contract to date, valued at over $100 million, and secured a record-breaking $130 million contract spanning five years, illustrating strong momentum in large deal transactions.
In terms of analyst ratings, TD Cowen reiterated a Buy rating with a $150 price target, citing Cloudflare’s enhanced go-to-market strategy and international market execution. Piper Sandler raised the price target from $112 to $151, maintaining a Neutral rating, while acknowledging Cloudflare’s achievements in securing large, strategic deals. Mizuho (NYSE:MFG) Securities increased its price target to $155 from $135, maintaining an Outperform rating, and highlighted Cloudflare’s ability to consistently exceed revenue predictions.
Cloudflare’s strategic focus on expanding its enterprise customer base and improving sales productivity has been noted by analysts as a potential driver for future growth. The company’s management has reaffirmed its full-year guidance, projecting revenue between $2.090 billion and $2.094 billion for 2025, signaling steady progress despite broader economic uncertainties.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.