Fatima Boolani, an analyst from Citi, maintained the Buy rating on Cloudflare (NET – Research Report). The associated price target remains the same with $180.00.
Fatima Boolani’s rating is based on Cloudflare’s strategic advancements and investments in AI-powered security solutions, which are expected to enhance its infrastructure and web asset protection capabilities. The company’s focus on integrating AI into its product offerings, particularly through its IaaS/PaaS stack, positions it as a key player in the secure development of AI-powered applications. This strategic direction is supported by deliberate investments in products, capital expenditures, and sales, which bolster Cloudflare’s potential for scaling monetization.
Despite some concerns about the current premium valuation and skepticism regarding the near-term stock momentum, Boolani remains confident in Cloudflare’s medium-term growth prospects. The expectation of a high-20s topline compound annual growth rate and improved free cash flow conversion underpins the Buy rating. Additionally, Cloudflare’s focus on enhancing sales productivity, strategic enterprise transactions, and the maturation of its sales organization are seen as positive factors that could drive the stock higher in the future.
According to TipRanks, Boolani is a 5-star analyst with an average return of 14.4% and a 58.52% success rate. Boolani covers the Technology sector, focusing on stocks such as Akamai, CyberArk Software, and CrowdStrike Holdings.
In another report released on March 25, Bank of America Securities also upgraded the stock to a Buy with a $160.00 price target.