TD Cowen maintains Cloudflare stock Buy rating, $162 target

Published 13/03/2025, 16:54
TD Cowen maintains Cloudflare stock Buy rating, $162 target

On Thursday, TD Cowen confirmed its positive stance on Cloudflare Inc . (NYSE: NYSE:NET), maintaining both a Buy rating and a $162.00 price target for the company’s shares. Currently trading at $114.54 with a market capitalization of $39.73 billion, the stock has shown strong momentum with a 52% gain over the past six months. The endorsement follows a successful analyst day event hosted by Cloudflare, which showcased the company’s strong product development, market strategy, and growing enterprise presence. According to InvestingPro data, analyst targets for NET range from $60 to $200, reflecting diverse views on the company’s valuation.

Cloudflare’s commitment to achieving $5 billion in annual recurring revenue (ARR) by 2028 was reiterated, alongside its target operating model aiming for 25% free cash flow (FCF) margins. The company’s impressive 77.32% gross profit margins and robust revenue growth of 28.76% year-over-year support these ambitious targets. The firm’s analysts highlighted Cloudflare’s effective execution strategies, which are accelerating the company’s penetration into the large enterprise sector and expanding its developer platform. These strategies are supported by Cloudflare’s go-to-market improvements. For deeper insights into Cloudflare’s financial metrics and growth potential, InvestingPro subscribers have access to over 14 additional key insights and comprehensive financial analysis.

The company’s estimated total addressable market (TAM) for 2025 stands at $181 billion, with expectations to grow to $231 billion by 2028. This growth projection is attributed to Cloudflare’s ability to leverage artificial intelligence (AI) for new opportunities and its sharpened focus on developers.

TD Cowen’s price target of $162.00 is based on a 22 times multiple of the firm’s forecasted fiscal year 2026 revenue for Cloudflare. This valuation reflects the analyst’s confidence in Cloudflare’s future financial performance and market position. The company’s strategic initiatives are seen as key drivers for continued growth and value creation for shareholders.

In other recent news, Cloudflare Inc. has been the subject of several analyst reports following its investor day. RBC Capital Markets adjusted its price target for Cloudflare to $148, maintaining an Outperform rating, citing the company’s strong management and strategic vision. Truist Securities reiterated a Buy rating with a $175 target, highlighting Cloudflare’s growth initiatives and potential market opportunities, particularly in the developer space. Piper Sandler lowered its price target to $131 while maintaining a Neutral rating, noting Cloudflare’s business acceleration and AI capabilities. Stifel analysts also maintained a Buy rating with a $175 target, expressing confidence in Cloudflare’s growth prospects and its position in the AI sector. Needham analysts reduced their price target to $145 but continued to recommend buying the stock, acknowledging the company’s technological advantages and revised revenue goals. Cloudflare’s management has set an ambitious revenue target of $5 billion by 2028, despite a delay attributed to macroeconomic conditions. These developments reflect a mixed but generally positive outlook from analysts regarding Cloudflare’s future performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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