Analyst Shrenik Kothari from Robert W. Baird maintained a Hold rating on Cloudflare and keeping the price target at $230.00.
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Shrenik Kothari has given his Hold rating due to a combination of factors around Cloudflare’s strong strategic position but demanding expectations. He sees the company as a key player in edge and agentic AI, with solid traction in Workers, Zero Trust, and DDoS, and channel checks point to healthy enterprise demand and meaningful support from pool-of-funds deal structures that enhance flexibility and deal velocity.
At the same time, the stock still carries a premium valuation around the low‑20s times forward sales, near but above historical averages, and remains one of the richer names in his coverage, keeping the burden on management to execute flawlessly and improve margins. With AI monetization and newer initiatives like crawler blocking and AI partnerships still in early stages and revenue contributions more medium‑to‑long term than immediate, he views the current setup as balanced risk/reward, favoring pullbacks as longer‑term opportunities rather than justifying a more aggressive rating now.
In another report released on February 5, Jefferies also maintained a Hold rating on the stock with a $185.00 price target.