Cloudflare Inc. (NET) PT Raised to $180 at Citi

Citi analyst Fatima Boolani raised the price target on Cloudflare Inc. (NYSE: NET) to $180.00 (from $145.00) while maintaining a Buy rating.

The analyst comments "NET capped off CY24 with all the right ingredients, those validating why we recently moved off the sidelines: a remarkable engine of new customer acquisition activity (+16K new logo adds accelerated), respectable bookings (decel but tough YoY comps), accelerating traction with enterprises as promised (record >$1M wins), with all this powered by visibly improving sales efficiency (5th straight Q of double-digit productivity gains). Further, this momentum is also not coming at the expense of profitability with OPM/FCFM still upsiding. Bears will likely harp on 1QE/CY25E below/inline undermining ultra-premium valuation (recall we flagged potential 1Q squeamishness), but we think acceleration into 2H is achievable and well-grounded in tangible inputs our mgmt callback reinforced. With redoubled conviction on sustainable 27-30% revenue growth towards a believable path to ~$5B revenues scaled profitably, compelling GenAI story, and more focused execution we reaffirm Buy, keeping CitiE above Street, lifting PT to $180 on higher multiples."

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