UPDATE: Wells Fargo Starts Cloudflare Inc. (NET) at Equal Weight

October 4, 2021 4:18 PM EDT
Get Alerts NET Hot Sheet
Price: $167.69 +1.46%

Rating Summary:
    12 Buy, 10 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 13 | Down: 13 | New: 72
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(Updated - October 4, 2021 4:26 PM EDT)

Wells Fargo analyst Andrew Nowinski initiates coverage on Cloudflare Inc. (NYSE: NET) with a Equal Weight rating and a price target of $122.00.

The analyst comments "We are initiating coverage of NET with an Equal Weight rating and $122 price target. Cloudflare is arguably one of the best-positioned vendors for Digital Transformation and migration to the cloud, in our view, and is also well positioned to be a leader in cloud security. However, the current valuation is ~45% higher than the peer group average, which we believe is already factoring in a potential acceleration in growth. While the company is seeing an uptick in demand from large customers, including the U.S. Federal Government, we believe operating leverage is still a long way out, as management plans to continue investing in the business once a breakeven point is reached. As such, we believe the market is appropriately balancing the risk/reward at current valuations."

For an analyst ratings summary and ratings history on Cloudflare Inc. click here. For more ratings news on Cloudflare Inc. click here.

Shares of Cloudflare Inc. closed at $114.98 yesterday.

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