Cloudflare shares target increased by Cantor Fitzgerald, cites solid quarter
On Friday, Cantor Fitzgerald adjusted the price target for Cloudflare Inc . (NYSE:) shares to $85, up from the previous target of $80, while keeping a Neutral rating on the stock.
The revision reflects Cloudflare’s strong performance in the face of economic headwinds, as the company outperformed FactSet consensus estimates across key financial metrics.
Cloudflare reported revenue that exceeded expectations by 1.8%, operating income that was around 60% higher than anticipated, earnings per share (EPS) that surpassed estimates by roughly 43%, and free cash flow (FCF) that was approximately 14% above forecasts. This performance, according to the analyst, reflects Cloudflare’s ability to exceed a manageable expectation following a recent dip in valuation.
The company’s stock experienced a positive after-market reaction on August 1, climbing 10% in contrast to a 1.4% decline in the . This response was attributed to Cloudflare’s prudent guidance, which suggests maintaining 2024 revenue projections close to the current levels after a robust quarter, potentially setting the stage for success in the second half of the year.
Cloudflare’s CEO, Mr. Matthew Prince, provided an updated outlook on the macroeconomic environment, suggesting that while conditions remain challenging, the company has successfully navigated the difficulties. The firm acknowledged the competitive nature of the market, emphasizing that Cloudflare has to vigorously compete for every deal it closes.
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