Madeline Brooks, an analyst from Bank of America Securities, reiterated the Buy rating on Cloudflare (NET – Research Report). The associated price target remains the same with $160.00.
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Madeline Brooks’s rating is based on Cloudflare’s impressive financial performance and strategic positioning in key markets. The company reported a significant revenue beat in the first quarter, driven by large deals in cybersecurity and AI enablement sectors, highlighting its strong market presence. Despite a slightly lower operating margin, Cloudflare’s increased investment in go-to-market strategies indicates confidence in sustaining its growth momentum.
Moreover, Cloudflare is capitalizing on multiple growth levers, such as the increasing adoption of its platform by high-spending customers and a notable rise in billings growth. The company’s strategic investments in Secure Access Service Edge (SASE) and AI services are gaining traction, positioning it well for future growth. While current margins may face short-term pressures, Cloudflare’s commitment to growth and its ability to forecast a reacceleration in growth while maintaining strong fundamentals underpin the Buy rating.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $150.00 price target.