Cloudflare rises after Barclays intiates coverage with 'overweight'

Cloudflare

02/12/2025 15:23

** Shares of cloud firm Cloudflare NET.N up 4.3% at $205.64

** Barclays initiates coverage with "overweight" rating and PT of $235, representing upside of 19.2% to stock's last closing price

** Brokerage says NET's homogeneous network supports 20% of internet with each of its product areas leveraged to "secular trends like growing cloud adoption, cybersecurity, AI inference and 'no click' search."

** End market for application performance and security is worth nearly $20 billion annually and growing in healthy high single digit range and NET has doubled its market share since 2021, Barclays adds

** Brokerage notes that NET's business has natural leverage that can scale margins and provide additional valuation support over time

** Up to last close, NET had gained ~83% YTD

 (Reporting by Arnav Mishra in Bengaluru)

 ((Arnav.Mishra@thomsonreuters.com;))