Morgan Stanley analyst Keith Weiss has maintained their bullish stance on NET stock, giving a Buy rating today.
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Keith Weiss has given his Buy rating due to a combination of factors that highlight Cloudflare’s strong performance and potential for future growth. The company has shown impressive results in the second quarter, with a significant increase in net new customers and an acceleration in total revenue growth. This growth is supported by Cloudflare’s investments in expanding its solution portfolio and go-to-market strategy, which have led to a notable increase in customer retention and revenue retention rates.
Furthermore, despite some pressure on gross margins, Cloudflare has managed to exceed operating margin expectations, demonstrating effective cost management. The company’s strategic initiatives, such as the announcement of Act IV of its product strategy, position it well to capitalize on future opportunities, particularly in the AI-driven web space. These factors contribute to the durability of Cloudflare’s growth, supporting the Buy rating and indicating potential for continued success in the market.