Cloudflare's Newer Innovations & GenAI Capabilities Under Limelight Amid Stabilizing Macro Conditions: Analyst
Portfolio Pulse from Nabaparna Bhattacharya
Mizuho analyst Michael Romanelli has reiterated a Neutral rating on Cloudflare, Inc. (NYSE:NET), raising the price target to $70 from $65. This follows Cloudflare's Q2 results, which saw a 32% YoY increase in revenue to $308.5 million, surpassing the Street's 30% forecast. The analyst believes Cloudflare can disrupt foundational security and networking areas and praises the company's strong positioning in Generative AI. The analyst raised FY23 revenue estimates to $1.287 billion from $1.283 billion and FY23 EPS to $0.37 from $0.35.
August 04, 2023 | 7:20 pm
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Cloudflare's Q2 results surpassed forecasts, leading to a raised price target and FY23 revenue and EPS estimates by Mizuho analyst. The company's potential to disrupt security and networking areas and strong positioning in Generative AI were also noted.
The positive Q2 results and raised price target and FY23 estimates by the analyst indicate a positive outlook for Cloudflare. The company's potential to disrupt certain areas and its strong positioning in Generative AI further enhance its prospects, potentially leading to a short-term increase in stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100