NET stock has formed a candle over candle reversal on the daily chart.
On Friday, July 17, 2020, William Blair analyst Jim Breen initiated coverage of Cloudflare (NET) with an Outperform rating.
The company uses a unified control plane to provide security, performance, and reliability services across on-premises, hybrid, cloud, and software-as-a-service applications over its global cloud platform, Breen tells investors in a research note. The analyst says Cloudflare is “disrupting large, established legacy markets” such as application delivery controls and content delivery networks. Cloudflare trades at 20.1 times 2021 estimated sales.
On July 10, 2020, JPMorgan analyst Sterling Auty raised their price target on Cloudflare to $52 from $30 and kept an Overweight rating on the shares.
The traction Cloudflare is seeing in its product portfolio “appears to be gaining steam through the current environment,” Auty tells investors in a research note. Further, the analyst expects the company to convert its free Teams offering over to a paid solution in the coming quarters, which he says has the potential of generating “additional revenue tailwinds.” Auty sees “ample upside opportunity” to the revenue results over the next several years to generate an attractive free cash flow profile that “propels the stock” to his price target.
On July 6, 2020, Piper Sandler analyst James Fish raised his price target on Cloudflare to $41 from $29 and kept an Overweight rating on the shares. The analyst believes the company is seeing “very strong demand” across web acceleration and cloud security. Cloudflare remains the “juggernaut in Web CDN and Cloud Security, and continues to show traction up-market,” Fish tells investors in a research note.