Stuttgart,,Germany,-,06-17-2023:,Person,Holding,Cellphone,With,Web,Page

acf/offering-cards

StartEngine

Boxabl

BOXABL is in the process of creating a building system that’s compatible with scalable factory mass production. Our mission is to significantly lower the cost of homeownership for everyone. Obsessively designed to standards that we believe will achieve quality, strength, and sustainability to last for generations.

DealMaker

Mode Mobile

Mode is disrupting the $1T+ smartphone market by turning smartphones into revenue streams for users. Join the EarnPhone revolution by investing in Deloitte’s #1 fastest-growing software company with 32,481% 3-year revenue growth, $60M+ in lifetime revenue, and partnerships with Best Buy, Walmart, Amazon, & Target.

Kingscrowd

Kingscrowd is building the Bloomberg data provider of the digital private markets. Our vision is to own the worlds private market data. 

Rad Intel

RAD Intel is an AI marketing intelligence platform that ensures brands engage in the right spaces before trends take off. More specifically, RAD’s AI-driven marketing intelligence platform helps brands predict what will work before it happens—identifying key topics, themes, content, and full campaigns.

Masterworks

Invest in multimillion dollar art by names like Banksy, Picasso, and Monet with shares

BofA Securities analyst Madeline Brooks on Tuesday upgraded Cloudflare, Inc. NET from Underperform to Buy, <a href="https://www.benzinga.com/quote/NET/analyst-ratings" target="_blank" rel="noreferrer noopener">raising the price forecast from $60 to $160.</a>



According to Brooks, Cloudflare has a strong potential to become a leader in AI-as-a-Service as enterprises prefer this method for AI consumption. The company is gaining traction in network security, particularly in SASE, as enterprises look to modernize their security solutions with software-based options.



This momentum in AI and security is expected to drive a 30% compound annual growth rate over the next three years, up from the previous estimate of 25%.



As a result, the analyst raises the price target for Cloudflare, based on a 20x multiple of its CY26 EV/Sales.



Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/25/03/44469333/alibabas-tsai-sounds-alarm-on-signs-of-ai-bubble-people-are-building-data-centers-on-speculation" rel="noreferrer noopener">Alibaba's Tsai Sounds Alarm On Signs Of AI Bubble In US: ‘People Are Building Data Centers On Speculation'</a>



The analyst also notes that customers are forecasting an 8% increase in AI spending, reaching $100k per customer, which will account for 15% of total customer spending.



Additionally, Cloudflare is increasingly chosen over major hyperscalers like AWS, Oracle, and Azure due to its ease of use, scalability, and superior utilization benefits, Brooks adds.



The analyst highlights that Cloudflare&#8217;s network security products are gaining significant market share, with 33% penetration and more than 50% of new spending in the near term expected to be directed toward security solutions.



Based on this momentum, Brooks is bullish that Cloudflare will meet or exceed its full-year revenue guidance.



However, the analyst notes potential risks, including the company's target of $5 billion in revenue for 2028, which assumes a revenue reacceleration and growth that is about 400 basis points higher than the average peer group forecast.



Achieving this goal will require near-perfect go-to-market execution, particularly with Enterprise customers, who have historically been a weaker segment for Cloudflare.



Additionally, the analyst cautions that AI could take longer to contribute significantly to revenue, given the nascent stage of the market and the challenges around pricing strategies.



Price Action: NET shares are trading higher by 2.4% to $126.91 at last check Tuesday.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/markets/asia/25/03/44474850/chinas-deepseek-ups-the-heat-in-openai-rivalry-upgrades-v3-model-improving-coding-and-reasoning-capability" target="_blank" rel="noreferrer noopener">China&#8217;s DeepSeek Ups The Heat In OpenAI Rivalry, Upgrades V3 Model Improving Coding And Reasoning Capability</a></li>
</ul>



Photo: T. Schneider/Shutterstock.com

Equities

News

Markets

Analyst Ratings

Movers

Tech

Trading Ideas

General

BofA upgrades Cloudflare to Buy, raises price target to $160, citing strong AI-as-a-Service and network security growth, projecting 30% growth.

Application error: a client-side exception has occurred (see the browser console for more information).