Analyst Maintains Buy on Cloudflare, Keeps $265 Price Target Amid Strategic AI-Driven Restructuring

In a report released today, Fatima Boolani from Citi maintained a Buy rating on Cloudflare, with a price target of $265.00.

Fatima Boolani has given his Buy rating due to a combination of factors that underscore Cloudflare’s long‑term growth profile despite near‑term share pressure. She acknowledges that recent results featured another solid revenue beat alongside some deceleration in key metrics and limited operating leverage, as well as investor concern around a sizable workforce reduction, which collectively weighed on sentiment and the stock’s after‑hours performance.

At the same time, she views the restructuring as a strategic realignment aimed at speeding execution by automating repeatable functions with AI and reinvesting much of the cost savings into growth roles, particularly in sales. Coupled with expanding sales capacity, increasing engagement from the largest spending customers, and reinforced confidence in Cloudflare’s path to $5 billion in ARR and roughly 30% compound growth by 2028, she maintains a Buy rating and keeps her price target unchanged at $265.

In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $245.00 price target.