Gold prices bounce off 3-week lows; demand likely longer term
Investing.com - JMP Securities has raised its price target on Cloudflare Inc . (NYSE:NET) to $225.00 from $180.00 while maintaining a Market Outperform rating. The new target represents potential upside from the current price of $198.42, with the stock already showing impressive momentum through a 154% return over the past year.
The firm cited "a preponderance of positive data points" including positive quarterly attainment data as factors behind the increased target.
JMP views Cloudflare as the "earliest beneficiary of the AI opportunity" in its coverage universe, noting that the company’s developer-centric products enable the building of AI rather than just securing it.
The research firm expressed belief that momentum will likely continue for Cloudflare as the company demonstrates progression in its late-stage business segments.
JMP specifically highlighted Cloudflare’s advancement in what it calls "Act II (Zero Trust)" and "Act III (Workers AI)" as key areas of business development supporting the higher valuation.
In other recent news, Cloudflare has been the focus of several analyst updates and company developments. RBC Capital raised its price target for Cloudflare to $210, citing strong momentum in its Workers platform following robust first-quarter results. Wells Fargo (NYSE:WFC) also increased its price target to $225, maintaining an Overweight rating and anticipating strong second-quarter results driven by large deals and rising demand for DDoS protection services. TD Cowen adjusted its price target to $200, citing strong demand for Cloudflare’s platform despite economic uncertainties.
Additionally, Cloudflare experienced a significant service outage on July 14, affecting its 1.1.1.1 service and causing downtime for some customers for 62 minutes. The company attributed the disruption to a misconfiguration of legacy systems that manage its infrastructure. JMP Securities noted that the outage impacted several Cloudflare services, including Access, Dashboard, and Workers AI. Despite these challenges, analysts remain optimistic about Cloudflare’s prospects, as reflected in the recent target price increases.
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