Analyst Mike Cikos of Needham maintained a Buy rating on Cloudflare, boosting the price target to $240.00.
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Mike Cikos has given his Buy rating due to a combination of factors that highlight Cloudflare’s strong performance and future potential. The company has shown impressive growth, with revenue accelerating to 28% year-over-year, surpassing the broader software industry. This growth is attributed to effective go-to-market strategies, including a significant increase in the number of account executives, which is expected to continue accelerating in the second half of the calendar year 2025.
Additionally, Cloudflare’s Pool of Funds is gaining traction among large customers, contributing significantly to the annual contract value. This indicates a potential for greater revenue upside in the future. The company is also seen as having an architectural advantage in the evolving AI landscape, which positions it well for continued success. These factors collectively support the Buy rating given by Mike Cikos.
Cikos covers the Technology sector, focusing on stocks such as Zscaler, Cellebrite DI, and Cognyte Software. According to TipRanks, Cikos has an average return of 13.1% and a 55.78% success rate on recommended stocks.