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On Friday, TD Cowen analyst Shaul Eyal increased the price target for Cloudflare Inc . (NYSE: NYSE:NET) shares to $162 from the previous target of $130, while maintaining a Buy rating on the company’s stock. The stock, currently trading at $167.18 with a market capitalization of $57.55 billion, has already surged 31% year-to-date. This adjustment follows Cloudflare’s robust performance in the fourth quarter of 2024, which featured a 27% increase in revenue and a 47% rise in customers with annual spending above $1 million.
Cloudflare experienced a higher rate of deal closures, shorter sales cycles, and marked its fifth consecutive quarter of double-digit year-over-year growth in sales productivity during the last quarter. According to InvestingPro data, the company maintains impressive gross profit margins of 77.53% and has achieved a robust revenue growth of 30.04% over the last twelve months. Eyal reiterated the Buy rating for Cloudflare, emphasizing the company’s effective execution of strategies poised to significantly enhance productivity, particularly in the United States, which is Cloudflare’s most significant market.
Eyal noted that Cloudflare’s intensified enterprise focus, coupled with gains in sales productivity and an increase in quota-carrying account executives, is expected to drive accelerated growth. The new price target of $162 is based on a 22 times multiple of the firm’s projected fiscal year 2026 revenue.
Cloudflare’s recent performance and strategic initiatives indicate a positive trajectory for the company, as it continues to capitalize on its enterprise customer base and bolster sales productivity. The updated price target from TD Cowen reflects confidence in Cloudflare’s potential for sustained growth and market expansion.
In other recent news, Cloudflare Inc. has seen a series of price target upgrades from various analyst firms, following the company’s strong year-end performance. RBC Capital Markets raised its price target for Cloudflare to $170, citing robust revenue growth and potential for further upside. Similarly, Citi analysts increased their price target to $180, noting Cloudflare’s substantial new client acquisition and robust bookings.
Piper Sandler also raised their target, to $153, highlighting advancements in AI-inferencing and gains in Secure Access Service Edge. Stifel analysts increased their target to $175, attributing this to Cloudflare’s execution of large deals and promising results from its Pool-of-Funds agreements. Lastly, Cantor Fitzgerald lifted its price target to $149, acknowledging Cloudflare’s strong sales execution and potential for continued growth.
These recent developments reflect analysts’ increased optimism in Cloudflare’s strategic direction and operational prowess. All analyst firms mentioned are looking forward to gaining additional insights into Cloudflare’s approach and financial details during the upcoming investor day.
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