Cloudflare price target lowered to $145 from $185 at Needham

Needham lowered the firm’s price target on Cloudflare (NET) to $145 from $185 but keeps a Buy rating on the shares. The company’s Investor Day presentation reiterated the Long-Term Margin model that is being supported by consistent Unit Economics and also pushed out the timeline to achieve $5B in revenue by a year, which is “understandable” given the significantly different macro backdrop relative to 2022 in addition to go-to-market changes, the analyst tells investors in a research note. The firm’s price target cut also accounts for broader multiple compression across its coverage, Needham added.