Cloudflare’s AI Innovations And Sales Strategy Drive Goldman Sachs Upgrade
Cloudflare Inc (NYSE:NET) stock is trading upwards Thursday after Goldman Sachs analyst Gabriela Borges upgraded the stock from Sell to Buy and raised its price target from $77 to $140.
Security stock performance in 2024 can almost entirely be explained by the extent to which the market believed each company was a platform rather than a point product, as per the analyst.
Borges flagged two catalysts for Cloudflare stock in 2025, including an improving sales and marketing productivity cycle after two years of evolution to better address platform sales in the enterprise and traction with Act III products for developer services as Cloudflare applies its core edge network architecture advantages to new AI inferencing use cases.
The price target boost reflects a jump in the multiple from 11x to 20x (Q5-Q8 revenue), raising the analyst’s 2026 revenue estimates by 2%, given his views on sales productivity and Act III.
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Borges changed …
Full story available on Benzinga.com