Analyst Expectations For Cloudflare's Future

Providing a diverse range of perspectives from bullish to bearish, 4 analysts have published ratings on Cloudflare NET in the last three months.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $87.25, a high estimate of $105.00, and a low estimate of $65.00. This upward trend is evident, with the current average reflecting a 0.67% increase from the previous average price target of $86.67.

Interpreting Analyst Ratings: A Closer Look

The standing of Cloudflare among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Cloudflare. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Cloudflare compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Cloudflare's stock. This analysis reveals shifts in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Cloudflare's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Cloudflare analyst ratings.

Delving into Cloudflare's Background

Cloudflare is a software company based in San Francisco, California, that offers security and web performance offerings by utilizing a distributed, serverless content delivery network, or CDN. The firm's edge computing platform, Workers, leverages this network by providing clients the ability to deploy, and execute code without maintaining servers.

Financial Milestones: Cloudflare's Journey

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Revenue Growth: Over the 3 months period, Cloudflare showcased positive performance, achieving a revenue growth rate of 29.98% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Net Margin: Cloudflare's net margin excels beyond industry benchmarks, reaching -3.76%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Cloudflare's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -1.8%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Cloudflare's ROA excels beyond industry benchmarks, reaching -0.53%. This signifies efficient management of assets and strong financial health.

Debt Management: With a below-average debt-to-equity ratio of 1.63, Cloudflare adopts a prudent financial strategy, indicating a balanced approach to debt management.

Analyst Ratings: What Are They?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.