Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Cloudflare Stock Soars as Analysts Reflect Positively After Investor Day

Published 05/13/2022, 05:23 AM
Updated 05/13/2022, 09:55 AM
© Reuters.  Cloudflare (NET) Stock Soars as Analysts Reflect Positively After Investor Day

© Reuters. Cloudflare (NET) Stock Soars as Analysts Reflect Positively After Investor Day

Cloudflare (NYSE:NET) held its Analyst Day yesterday during which the management highlighted a series of new products that will help the company expand its TAM.

Here are comments from 3 analysts who attended the event.

Wells Fargo’s Andrew Nowinski (Overweight, PT to $60 from $70): “While the company has a number of growth drivers that should enable ~50%+ growth going forward, we believe the current market backdrop will limit multiple expansion.”

Morgan Stanley’s Keith Weiss (Equal Weight, $100): “Investor Day highlighted both the extent to which Cloudflare's prolific innovation engine has expanded the market opportunity, now at $135 billion, and solid traction across the newer solution categories driving consistent expansion of NRR, now at 127%, and supporting a 50%+ revenue CAGR.”

Cowen’s Shaul Eyal (Outperform, $200): “Key takeaways include the following: (1) NET's growing TAM opportunity of $115B provides the backdrop for sustainable >45% growth in the coming years, (2) NET expects to be free cash flow positive in 2H22, (3) improving new product attach rates reflect only the tip of the iceberg for up-sell/cross-sell opportunities, and (4) the march toward the high-end enterprise remains intact.”

NET stock is up 4.5% in pre-market Friday.

By Senad Karaahmetovic

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.