Stifel raises Cloudflare stock price target to $275 on strong earnings

Investing.com - Stifel raised its price target on Cloudflare Inc. (NYSE:NET) to $275.00 from $230.00 while maintaining a Buy rating following the company’s quarterly earnings report. The new target represents potential upside from Cloudflare’s current price of $248.20, which has already surged 153.68% over the past year according to InvestingPro data. The stock is currently trading near its 52-week high of $231.13.

The web infrastructure company delivered what Stifel called "another strong print across the board," marking its largest top-line beat since going public. Remaining performance obligations (RPO) grew 43% year-over-year, accelerating for the third consecutive quarter to reach its highest growth rate since the fourth quarter of 2022. This acceleration aligns with Cloudflare’s overall revenue growth of 27.32% over the last twelve months.

Cloudflare’s dollar-based net retention rate (DBNRR) improved to 119%, also reaching its highest level since the fourth quarter of 2022. The company reported improved deal close rates and its fastest growth in net sales capacity in over two years, while adding a record number of customers spending over $1 million and $5 million.

The firm noted ongoing traction with Pool-of-Funds, Zero Trust, and Workers products, with artificial intelligence emerging as a developing theme. Looking forward, Cloudflare guided fourth-quarter 2025 results above consensus expectations and raised its full-year guidance by more than the quarterly beat. InvestingPro data shows 28 analysts have revised their earnings upwards for the upcoming period, with analysts predicting the company will be profitable this year with an EPS forecast of $0.91 for fiscal 2025.

Stifel identified two minor concerns: Chief Operating Officer CJ Desai is departing to become CEO of another public company, though the transition is expected to be smooth, and gross margin decreased slightly to near the lower end of the company’s target range. Despite this slight decrease, InvestingPro data indicates Cloudflare still maintains impressive gross profit margins of 76.14%. However, investors should note that based on InvestingPro’s Fair Value assessment, the stock appears to be overvalued at current levels despite its strong operational performance. For deeper insights and 15 additional ProTips on Cloudflare, check out the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Cloudflare Inc . has reported strong third-quarter 2025 results, which have led several analyst firms to raise their stock price targets. Cantor Fitzgerald increased its price target to $224, citing a 3% revenue beat and a 1.7% increase in guidance. Truist Securities raised its target to $275, highlighting growth momentum in Cloudflare’s largest customer cohort and success with SASE, Zero-Trust, and AI inference products. TD Cowen adjusted its target to $265, noting 31% revenue growth and a 43% increase in remaining performance obligations (RPO). Piper Sandler set a new target of $249, emphasizing Cloudflare’s strong execution and impressive net-customer count, particularly in the upmarket segment. UBS also raised its price target to $245, describing the quarter as "standout" with a 31% revenue growth that exceeded expectations. These developments reflect strong performance and positive future guidance from Cloudflare.

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