BTIG analyst Gray Powell has maintained their neutral stance on NET stock, giving a Hold rating today.
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Gray Powell has given his Hold rating due to a combination of factors that include Cloudflare’s strong financial performance and stretched valuation. The company reported impressive Q2’25 results, with revenue exceeding expectations and a notable increase in its 2025 growth outlook. This was supported by strong key performance indicators and significant large deal activity, including wins with major Fortune 100 and 500 companies.
However, despite these positive developments, Powell notes that Cloudflare’s current valuation appears high when compared to its high-growth peers. Trading at over 23.0 times its estimated 2027 enterprise value to sales, the stock’s valuation is considerably higher than the average of 11.5 times for similar companies. This stretched valuation limits the potential upside, leading Powell to maintain a Hold rating on Cloudflare’s stock.
In another report released today, Jefferies also maintained a Hold rating on the stock with a $225.00 price target.
NET’s price has also changed dramatically for the past six months – from $138.400 to $207.680, which is a 50.06% increase.