Optimistic Buy Rating for Cloudflare Driven by Strategic Free Cash Flow Adjustments and Long-term Confidence

William Blair analyst Jonathan Ho has maintained their bullish stance on NET stock, giving a Buy rating on May 22.

Jonathan Ho has given his Buy rating due to a combination of factors including the strategic adjustments made to Cloudflare’s free cash flow estimates for 2025. The revisions align with the company’s guidance that anticipates a significant portion of cash flow to be realized in the latter half of the year. This adjustment reflects a positive outlook on the company’s ability to generate cash flow effectively, particularly in the third and fourth quarters.
Furthermore, the unchanged full-year projections for 2025 and 2026 suggest confidence in the company’s long-term financial health and operational strategy. By maintaining a consistent free cash flow estimate for 2025, despite quarterly adjustments, Ho indicates a belief in Cloudflare’s robust financial planning and execution capabilities. These factors collectively underpin the Buy rating, suggesting an optimistic view of the company’s future performance.

Ho covers the Technology sector, focusing on stocks such as CyberArk Software, Cloudflare, and Palo Alto Networks. According to TipRanks, Ho has an average return of 10.5% and a 57.94% success rate on recommended stocks.

In another report released on May 22, TD Cowen also maintained a Buy rating on the stock with a $150.00 price target.