1 Wall Street Analyst Raises Cloudflare's Price Target by 55%: Here's Why They're Right.
Shares of Cloudflare (NYSE: NET) are on their way to $124, according to an analyst at Argus. They argue that Cloudflare has simultaneously improved profitability and revamped its sales team, which should help investors warm to the unprofitable cloud computing company. This new price target represents an upside of about 24% from the current stock price and is 55% higher than the previous price target.
Cloudflare operates a global edge cloud computing network that spans more than 310 cities. The company's two core services revolve around website performance and security. By caching data close to users, websites can greatly reduce latencies and improve the user experience. And by sticking Cloudflare in between users and servers, Cloudflare can absorb and mitigate large bursts of nefarious traffic.
The company has long been layering additional products and services on top of its edge network. This includes a developer platform with serverless computing, data storage, and website hosting, as well as Zero Trust security services.
Source Fool.com
