UPDATE: Wells Fargo Starts Cloudflare Inc. (NET) at Equal Weight
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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."
Shares of Cloudflare Inc. closed at $114.98 yesterday.
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