Robert W. Baird analyst Shrenik Kothari has maintained their neutral stance on NET stock, giving a Hold rating on October 24.
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Shrenik Kothari has given his Hold rating due to a combination of factors impacting Cloudflare’s current market position. The company reported a strong third quarter with impressive revenue growth and significant increases in net retention rates and remaining performance obligations. However, the departure of a key executive, CJ Desai, introduces some uncertainty in the near term, despite the company’s assurances of continuity in their go-to-market strategies.
Moreover, while Cloudflare’s valuation has surged following a substantial rally, it now trades at a high enterprise value to sales multiple, which suggests that the stock is fairly valued at present. Although the long-term outlook remains positive, particularly with the company’s ambitious revenue targets and advancements in AI, the current risk-reward balance appears more neutral, justifying the Hold rating.
In another report released on October 24, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $238.00 price target.
NET’s price has also changed dramatically for the past six months – from $120.780 to $222.500, which is a 84.22% increase.