Piper Sandler Considers Cloudflare As Fairly Valued, Downgrades To Neutral

Piper Sandler analyst James Fish downgraded Cloudflare NET to Neutral from Overweight with a price target of $141, up from $125, implying an upside of 0.96% based on the October 8 closing price of $139.66.
The stock has to "grow into its valuation at this time" as expectations are already embedding 50% growth, despite a likely 40% starting point guide for 2022, Fish notes.
Cloudflare "is a secular powerhouse, and we would be constructive at a lower valuation," Fish adds.
Last month Oppenheimer downgraded the stock due to intensifying competition from Microsoft Corp MSFT and Amazon.com Inc AMZN.
Price Action: NET shares traded lower by 2.30% at $136.45 in the premarket session on the last check Monday.