Cloudflare's (NYSE:NET) 2023 Investor Day was "relatively upbeat" following its disappointing earnings last week, BTIG said in a note to clients Friday.
However, the firm maintained a Neutral rating on the stock, which is up over 6% so far on Friday.
BTIG explained that at the event, Cloudflare's management clarified the intention behind recent sales organizational changes and highlighted the opportunity to drive improved productivity, as well as providing "some compelling statistics on pipeline coverage" and highlighted some new product-level disclosures.
"Management tone was bullish and NET clearly sees an opportunity to displace legacy appliance vendors across multiple categories in both networking and cybersecurity," it wrote. "That said, our independent field work leads us to believe that spending trends for NET's core web application security products are normalizing in 2023 after a spike in 2021 and 2022."
The analysts believe Cloudfare is in a transition period, and stated that their firm "would like to see continued disclosures on the growth of new product initiatives to gain greater confidence in the long-term outlook."
Elsewhere on Friday, Guggenheim upgraded the shares of Cloudflare to Neutral from Sell with a $40 price target. It told investors in a note that they listing NET as its shares have dropped 32% to its lowered price target of $40 since they reported disappointing 1Q23 earnings last Thursday.
"Although next quarter looks attainable, we continue to view second-half revenue implied by reduced guidance to be a risk unless, of course, the macro economy improves. However, we now view the risk/reward as more balanced at the current stock price," the firm said.