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Investing.com - TD Cowen raised its price target on Cloudflare Inc. (NYSE:NET) to $265 from $250 on Friday, while maintaining a Buy rating on the stock following the company’s strong third-quarter results. The new target is slightly above the current price of $247.35, with the stock already trading near its 52-week high and delivering an impressive 153.68% return over the past year. According to InvestingPro data, the company appears overvalued based on its Fair Value assessment.
The cloud services provider reported 31% revenue growth and 43% RPO (remaining performance obligation) growth in Q3 2025, prompting the company to raise its guidance for upcoming quarters. This performance aligns with the company’s 27.32% revenue growth over the last twelve months, supported by an impressive 76.14% gross profit margin.
Cloudflare expects to reach a $3 billion revenue run rate by the fourth quarter of 2026 and projects hitting $5 billion by the fourth quarter of 2028, according to TD Cowen’s research note.
The firm noted that Cloudflare’s go-to-market transformation remains on track, with demand for its services continuing to show strength across product lines and among large customers.
TD Cowen also highlighted that Cloudflare is strengthening its AI capabilities through both organic development and strategic tuck-in acquisitions.
In other recent news, Cloudflare Inc . reported impressive third-quarter results, with a notable 31% revenue growth that surpassed expectations and previous guidance. UBS highlighted this achievement by raising its price target to $245, while maintaining a Neutral rating, as Cloudflare also guided to a 28% growth for the fourth quarter. Mizuho, also responding to the strong quarterly results, increased its price target to $280, maintaining an Outperform rating and noting the 3-point acceleration from prior quarters. RBC Capital followed suit by raising its target to $265, citing the acceleration in remaining performance obligations and dollar-based net retention rate.
Piper Sandler raised its price target for Cloudflare to $249, applauding the company’s strong execution and impressive net-customer count, especially in the upmarket segment. Citizens also lifted its price target to $270, maintaining a Market Outperform rating, and praised the leadership of CEO Matthew Prince and go-to-market leader Mark Anderson for delivering measurable results. These recent developments reflect a positive sentiment among analysts regarding Cloudflare’s performance and future prospects.
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