Needham analyst Mike Cikos maintained a Buy rating on Cloudflare (NET – Research Report) today and set a price target of $145.00.
Mike Cikos has given his Buy rating due to a combination of factors, including Cloudflare’s reaffirmation of its long-term margin model, which is supported by stable unit economics. The company has adjusted its timeline to reach $5 billion in revenue, extending it by a year, which Cikos views as a reasonable move considering the changing macroeconomic conditions and adjustments in their market approach.
Additionally, Cikos appreciates Cloudflare’s unique technological architecture, particularly its use of lightweight Isolates, which provides a competitive edge over traditional cloud service providers that rely on virtual machines and containers. This technological advantage, combined with the company’s strategic adjustments and solid economic fundamentals, underpins Cikos’s confidence in Cloudflare’s growth potential, justifying the Buy rating.
In another report released today, TD Cowen also reiterated a Buy rating on the stock with a $162.00 price target.