Keith Weiss, an analyst from Morgan Stanley, maintained the Buy rating on Cloudflare (NET – Research Report). The associated price target was raised to $150.00.
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Keith Weiss has given his Buy rating due to a combination of factors that highlight Cloudflare’s potential for long-term growth. The company reported a strong first quarter, adding over 13,000 new customers and achieving a 27% year-over-year revenue growth. Despite some pressure on gross margins, Cloudflare managed to improve its operating margins and significantly exceeded free cash flow expectations, demonstrating financial resilience.
Cloudflare’s prospects are further supported by its strategic positioning as a platform company, capable of addressing diverse customer needs. The signing of a substantial $130 million deal with a major technology vendor underscores the value of its Workers platform. Additionally, Cloudflare’s commitment to innovation is evident in its longest contract to date, a seven-year agreement with a critical infrastructure provider. The company’s ability to execute effectively is bolstered by the addition of experienced executives, contributing to notable growth in regions like APAC. These elements collectively position Cloudflare as a strong contender in the market, justifying the Buy rating.
Weiss covers the Technology sector, focusing on stocks such as Adobe, Intuit, and ServiceNow. According to TipRanks, Weiss has an average return of 13.9% and a 65.98% success rate on recommended stocks.
In another report released today, Needham also maintained a Buy rating on the stock with a $160.00 price target.