Stifel analysts upgraded Cloudflare (NYSE:NET) to Buy from Hold, raising the price target on the stock to $136 from $95. The upgrade reflected growing confidence in Cloudflare’s ability to execute effectively and capitalize on its massive, expanding total addressable market (TAM).
Cloudflare is expected to sustain annual revenue growth of 25–30% while improving profitability over the coming years. The analysts pointed to key factors driving this optimism, including recent leadership enhancements, improved sales productivity as Cloudflare’s go-to-market strategy gained traction, and increasing success in enterprise-level markets.
The company’s multiple growth avenues—across its Application, Network, Zero Trust, and Developer Services segments—continued to deliver momentum. Early signs of AI inference adoption on Cloudflare’s global, low-latency network also present significant upside potential. Despite its premium valuation, Cloudflare’s strong execution, exposure to secular technology trends, and self-driven improvements make it a standout investment. The analysts highlighted Cloudflare as a best-in-class asset, offering substantial long-term growth opportunities and the greatest upside optionality within Stifel’s coverage universe.