Robert W. Baird analyst Shrenik Kothari has maintained their neutral stance on NET stock, giving a Hold rating yesterday.
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Shrenik Kothari has given his Hold rating due to a combination of factors that reflect both the opportunities and challenges facing Cloudflare. The company is strategically positioned to capitalize on the evolving ‘answer economy’ and ‘agentic web,’ where AI-driven interactions are becoming more prevalent. Cloudflare’s ability to manage and monetize AI interactions through its network could potentially transform it into a toll operator for AI web traffic, offering significant growth prospects.
However, while these opportunities are promising, there are uncertainties and competitive pressures that warrant caution. The market for AI-driven web interactions is still developing, and Cloudflare must navigate challenges such as competition from other bot management solutions and the need to maintain its independence in the AI landscape. These factors contribute to the Hold rating, as the potential benefits are balanced by the risks and uncertainties in the current market environment.
In another report released yesterday, Jefferies also maintained a Hold rating on the stock with a $225.00 price target.