Cloudflare Soars 23% After Cloud Platform Launch
Shares of Cloudflare soared 23% on Monday following the cloud computing company's launch of its new cloud-based platform Cloudflare One. The network-as-a-service platform promises to secure and connect companies and remote working teams anywhere and on any device.
Cloudflare (NET) said in a blog posted on its website that Cloudflare One “replaces a patchwork of appliances and WAN technologies with a single network that provides cloud-based security, performance, and control through one user interface.”
The company also said that it has integrated the Cloudflare One platform with all major providers of identity management and device-security solutions. Microsoft Active Directory, Google Workspace, Okta and Ping Identity are some of the notable providers of Cloudflare One. (See NET stock analysis on TipRanks)
On Oct. 5, Robert W. Baird analyst Jonathan Ruykhaver reiterated a Buy rating on the stock with a price target of $48 (15.8% downside potential). In a note to investors, Ruykhaver said, “While we believe companies are likely to employ a hybrid infrastructure, we do see a continued shift to the cloud in security and believe Cloudflare is positioning itself to take advantage of this trend. We also believe Cloudflare is positioning itself for further growth and share gains from its performance and reliability portfolio of products.”
Currently, the Street has a bullish outlook on the stock. The Strong Buy analyst consensus is based on 9 Buys and 2 Holds. With shares up over 234% year-to-date, the average price target of $48.56 implies downside potential of 14.8% to current levels.
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