Mizuho Securities analyst Gregg Moskowitz has reiterated their neutral stance on NET stock, giving a Hold rating yesterday.
Gregg Moskowitz’s rating is based on several factors that influence Cloudflare’s current market position and future potential. Despite the company’s robust architecture and innovative culture, which are positive indicators, the high valuation of Cloudflare’s stock remains a concern. This valuation makes it less attractive compared to other high-growth software companies, prompting a Hold rating.
Additionally, while Cloudflare has shown confidence in maintaining strong revenue growth and has reiterated its long-term margin targets, the uncertainty surrounding the actual business benefits from AI inferencing workloads adds an element of risk. The decision to lower the price target from $160 to $140 reflects recent compression in comparable multiples, further justifying the Hold recommendation.
In another report released yesterday, Robert W. Baird also maintained a Hold rating on the stock with a $145.00 price target.
NET’s price has also changed dramatically for the past six months – from $78.860 to $119.400, which is a 51.41% increase.
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