Cloudflare Stock Sees Surge in Analyst Upgrades and Earnings Anticipation Amidst Cybersecurity Demand

Cloudflare (NET) stock has surged to a 52-week high, with analysts upgrading price targets from Wells Fargo and RBC Capital. The strong demand for cybersecurity solutions is seen as a key driver. There's anticipation for a potential beat-and-raise quarter driven by large deals and DDoS protection demand. However, some express concern about recent dips in stock price amidst broader market gains.

Cloudflare (NET) stock has seen a significant surge, reaching a 52-week high and receiving upgrades from major analysts like Wells Fargo and RBC Capital. The company's strong performance is driven by robust demand for cybersecurity solutions, with analysts anticipating a potential beat-and-raise quarter driven by large deals and increasing demand for DDoS protection services.

Wells Fargo recently raised its price target for Cloudflare to $225.00 from $200.00, maintaining an Overweight rating on the stock [1]. The new target represents potential upside for the $68.4 billion company, which has already delivered an impressive 83% return year-to-date. The firm expects Cloudflare to report strong second-quarter 2025 results, driven by large deals and increasing demand for DDoS protection services.

The company's robust financial health, with 76.88% gross margins and 27.79% revenue growth over the last twelve months, supports this optimistic outlook. Wells Fargo's research indicates robust large deal activity, including 14 seven-figure deals and four deals ranging between $10-15 million. These deals contribute to the firm's positive outlook on Cloudflare's growth trajectory.

Despite the optimism, there are whispers of concern about recent dips in stock price amidst broader market gains. However, the overall sentiment remains positive, with analysts expecting Cloudflare to continue its strong performance.

References:
[1] https://www.nasdaq.com/articles/cloudflare-stock-net-opinions-analyst-upgrades-and-earnings-anticipation
[2] https://www.investing.com/news/analyst-ratings/cloudflare-stock-price-target-raised-to-225-from-200-at-wells-fargo-93CH-4143696