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On Friday, Stifel analysts demonstrated confidence in Cloudflare Inc . (NYSE: NYSE:NET) by raising their price target on the company’s stock to $175, up from the previous target of $136, while continuing to endorse the stock with a Buy rating. The stock, currently trading near its 52-week high of $144.30, has delivered impressive returns with a 31.43% gain year-to-date. According to InvestingPro analysis, the stock appears overvalued at current levels. Adam Borg from Stifel praised Cloudflare for its impressive performance at the end of 2024, noting that the company exceeded all key metrics in comparison to guidance and estimates.
Cloudflare’s success was attributed to several factors, including robust execution of large deals, enhancements in sales productivity, and the promising early results from its eight-figure Pool-of-Funds agreements. The company’s impressive 77.53% gross profit margin and strong revenue growth of 30.04% support this positive momentum. InvestingPro data reveals 16 additional key insights about Cloudflare’s performance and potential, available to subscribers. Borg also highlighted Cloudflare’s emerging traction in artificial intelligence and a positive shift in macroeconomic commentary as additional reasons for the raised price target.
The analyst’s optimism extends into the future, with the fiscal year 2025 revenue guidance closely aligning with consensus expectations. While InvestingPro indicates net income is expected to grow this year, the analyst noted that profitability projections appeared slightly conservative due to the company’s increased investments aimed at reaccelerating growth. Dive deeper into Cloudflare’s comprehensive financial analysis with InvestingPro’s detailed research report, part of the coverage available for 1,400+ US stocks.
The positive assessment from Stifel reflects Cloudflare’s strategic moves and its potential to capitalize on market opportunities. The company’s focus on expanding its offerings and strengthening its position in the competitive tech landscape has garnered analyst attention and investor interest.
The update from Stifel comes as Cloudflare continues to navigate a dynamic and evolving industry, with the raised price target serving as a testament to the company’s solid performance and promising prospects for continued growth.
In other recent news, Cloudflare Inc. has been the subject of several analyst updates. Cantor Fitzgerald adjusted their price target for Cloudflare to $149, maintaining a Neutral rating, while acknowledging the company’s solid sales execution and future investment plans. Similarly, Needham raised their price target to $185, maintaining a Buy rating, and highlighted Cloudflare’s successful go-to-market strategy and increased customer volume. Bernstein SocGen Group also increased their price target, setting it at $100, and maintained a Market Perform rating, acknowledging the company’s robust Q4 2024 earnings. BTIG maintained its Neutral rating on Cloudflare after the company reported a 26.9% year-over-year increase in revenue, surpassing estimates. Lastly, JMP Securities raised their price target to $180, maintaining a Market Outperform rating, and noted Cloudflare’s unique position within the cybersecurity sector. These recent developments reflect the confidence of various firms in Cloudflare’s performance and growth potential.
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