Cloudflare: A Leading Software Stock with High Growth Potential

Tuesday, Sep 2, 2025 1:37 am ET1min read

Stifel reaffirmed its "Buy" rating and $230 price target for Cloudflare (NET), citing confidence in the company's prospects across multiple focus areas, including Act 4, Zero Trust, AI, and organizational maturity. The firm believes Cloudflare can grow by 25%-30% in the next few years, expanding operating margin and free cash flow.

Title: Analysts Optimistic About Cloudflare's Growth Prospects

Stifel Financial has reaffirmed its "Buy" rating and raised the price target for Cloudflare (NET) to $230, reflecting confidence in the company's future prospects. The investment firm cited several key areas of growth, including Act 4, Zero Trust, AI, and organizational maturity, as drivers for its optimism. Stifel expects Cloudflare to achieve a 25%-30% growth rate in the next few years, with significant improvements in operating margin and free cash flow.

The analyst report highlights Cloudflare's strategic focus on these areas, which are expected to contribute to robust revenue growth. Act 4, for instance, is a significant initiative aimed at expanding Cloudflare's product offerings and market reach. Zero Trust, AI, and organizational maturity are also seen as critical factors that will enhance Cloudflare's competitive edge and operational efficiency.

Stifel's confidence in Cloudflare's growth prospects is echoed in the broader market sentiment. Analysts from various firms have been consistently positive about the company's potential, reflecting a general consensus on its ability to capitalize on emerging trends and technological advancements.

References:
1. [1] https://www.investing.com/news/analyst-ratings/4

Cloudflare: A Leading Software Stock with High Growth Potential

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