Gold prices set for weekly drop as strong dollar weighs; Trump tariffs in focus
On Thursday, Piper Sandler adjusted its outlook on Cloudflare Inc (NYSE:NET) shares by reducing the price target to $131 from the previous $153, while maintaining a Neutral rating on the stock. The stock, currently trading at $114.19, has seen a significant -8.87% decline over the past week. According to InvestingPro analysis, Cloudflare appears overvalued at its current market capitalization of $39.07 billion. Piper Sandler’s analysis followed Cloudflare’s annual analyst day where the company highlighted its ongoing business acceleration, including in areas of product innovation, market strategy, and overall growth.
Cloudflare’s presentation assured stakeholders that there have been no customer delays attributed to recent macroeconomic volatility. The company also showcased its AI capabilities, which, along with an improved go-to-market process and increased productive capacity, are expected to strengthen Cloudflare’s position in AI, Zero Trust Network Access (ZTNA), and other areas. The company maintains impressive gross profit margins of 77.32% and operates with a moderate level of debt, with a healthy current ratio of 2.86.
Despite the positive developments, Piper Sandler noted that the impact of proof of funds (PoF) appeared more significant than initially anticipated, although specific details were limited. Additionally, while no new products were announced during the event, management suggested that upcoming announcements could be expected at Security Week the following week.
The long-term operational model for Cloudflare was reaffirmed, with the company’s ambitious revenue goal of $5 billion now projected for 2028. Piper Sandler expressed belief in Cloudflare’s potential as a long-term market leader with a solid platform, but cited the alignment of current expectations and valuation as the reason for reiterating a Neutral stance and lowering the price target. With revenue growth of 28.76% in the last twelve months and analysts predicting profitability this year, investors seeking deeper insights can access comprehensive analysis and 14 additional ProTips through InvestingPro’s detailed research reports.
In other recent news, Cloudflare Inc. has seen varied analyst activity following its Investor Day. Stifel has maintained a Buy rating with a $175 price target, expressing confidence in Cloudflare’s growth potential and its strategic position in artificial intelligence. Needham, on the other hand, reduced its price target to $145 while maintaining a Buy rating, noting Cloudflare’s delay in achieving a $5 billion revenue target by one year due to macroeconomic changes. Cantor Fitzgerald kept a Neutral rating with a $149 price target, reflecting a cautious view on Cloudflare’s stock despite the company’s optimistic growth metrics and AI opportunities. Mizuho (NYSE:MFG) also adjusted its outlook, lowering the price target to $140 and maintaining a Neutral rating, citing high valuation concerns despite Cloudflare’s robust growth targets and scalable infrastructure. These developments indicate a mix of optimism and caution among analysts regarding Cloudflare’s future performance and strategic initiatives.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.