Cloudflare stock price target raised to $210 from $155 at RBC Capital

Investing.com - RBC Capital has raised its price target on Cloudflare Inc . (NYSE:NET) to $210 from $155 while maintaining an Outperform rating on the stock. According to InvestingPro data, the stock is currently trading near its 52-week high of $198.43, though analysis suggests the shares may be overvalued at current levels.

The firm cited continued momentum in Cloudflare’s Workers platform following strong Q1 results as a primary factor in the decision to increase the price target.

RBC Capital noted that Cloudflare continues to perform well in cybersecurity checks related to Secure Access Service Edge (SASE) solutions, though the success of the Workers platform remains the main focus for investors.

Despite raising the price target substantially, the research firm described the short-term setup for the stock as "neutral," pointing out that Cloudflare shares have already risen 54% since the company’s last earnings report.

RBC Capital continues to view Cloudflare as one of its "favorite long-term ideas" and expects the company to potentially beat expectations and raise its 2025 guidance.

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 strategic transactions. Additionally, Wells Fargo (NYSE:WFC) raised its price target for Cloudflare to $225, maintaining an Overweight rating due to expectations of strong second-quarter 2025 earnings, driven by significant large deals and increasing demand for DDoS protection services. TD Cowen also increased its price target to $200, citing strong demand for Cloudflare’s services despite economic uncertainties. The firm highlighted a clear path for Cloudflare to reach $5 billion in annual recurring revenue by fiscal year 2026.

In response to a recent service outage caused by a service topology change, Cloudflare has resolved the issue and implemented measures to prevent future occurrences. Despite the outage, JMP Securities maintained a Market Outperform rating with a $180 price target, noting Cloudflare’s significant year-to-date stock performance. Lastly, the company received positive feedback for its prompt handling of the outage, as noted by TD Cowen, which attributed the incident to a third-party issue.

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