Stifel reiterates Buy rating on Cloudflare stock with $230 price target

Published 29/08/2025, 13:10
Stifel reiterates Buy rating on Cloudflare stock with $230 price target

Investing.com - Stifel has reiterated its Buy rating and $230.00 price target on Cloudflare Inc. (NYSE:NET), which has seen an impressive 162.57% return over the past year, following a meeting with the company’s CEO Matthew Prince at Stifel’s 2025 Tech Executive Summit.

The firm discussed several topics with Prince including Cloudflare’s organizational maturity, Zero Trust, AI, and Act 4, expressing confidence in the company’s opportunities across various focus areas.

Stifel believes Cloudflare has the potential to drive 25%-30%+ growth and expand operating margin and free cash flow in the coming years, supported by its broadening portfolio and continuing signs of go-to-market improvements.

The firm acknowledged that while Cloudflare shares "are certainly not cheap," trading near its 52-week high of $219, it expects the stock can continue moving higher as self-help dynamics and solid technology leveraged to secular trends help deliver financial and stock outperformance. InvestingPro analysis suggests the stock is currently overvalued, with 15+ additional key insights available to subscribers.

Stifel maintains that Cloudflare offers "the most upside optionality" in its coverage universe for the coming years, driven by emerging Zero Trust and AI opportunities. With analyst targets ranging from $90 to $255, investors can access detailed valuation analysis and more comprehensive insights through the InvestingPro Research Report.

In other recent news, Cloudflare Inc. reported impressive financial results for the second quarter of 2025, with earnings per share reaching $0.21, surpassing analyst forecasts of $0.18. The company’s revenue also exceeded expectations, totaling $512.3 million against the projected $501.21 million. Following these strong earnings, Citizens JMP analyst raised Cloudflare’s price target to $250, maintaining a Market Outperform rating. Additionally, Cloudflare announced its integration as the first Cloud Access Security Broker with leading generative AI platforms, including ChatGPT Enterprise, Claude by Anthropic, and Google Gemini. This integration aims to enhance business visibility and control over AI use in the workplace. Furthermore, Cloudflare introduced new AI security features to its Zero Trust platform, Cloudflare One. These features, known as AI Security Posture Management, are designed to help organizations monitor and control AI usage while maintaining security standards.

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