TD Cowen analyst Shaul Eyal reiterated a Buy rating on Cloudflare today and set a price target of $265.00.
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Shaul Eyal has given his Buy rating due to a combination of factors, primarily his expectation that Cloudflare’s first-quarter revenue growth has re-accelerated, supported by strong demand for its Workers AI and application security offerings, particularly among large enterprises. He also anticipates healthy net retention and solid profitability metrics, including robust gross margins and operating leverage, underscoring the company’s ability to scale efficiently.
He views the recent pullback in the stock as overly harsh, driven by broad-based selling and concerns related to Anthropic’s Claude Mythos and the Project Glasswing initiative, which he believes do not reflect Cloudflare’s strategic position. Given Cloudflare’s role as core internet infrastructure handling a significant share of global traffic and blocking massive volumes of threats daily, he sees the company as a likely long-term beneficiary of AI trends and expects its valuation multiple to recover as growth remains strong.
Eyal covers the Technology sector, focusing on stocks such as Check Point, Palo Alto Networks, and Fortinet. According to TipRanks, Eyal has an average return of 15.2% and a 53.55% success rate on recommended stocks.
In another report released on April 12, RBC Capital also maintained a Buy rating on the stock with a $240.00 price target.