Cloudflare initiated with a Sell at Goldman Sachs

Goldman Sachs analyst Gabriela Borges initiated coverage of Cloudflare with a Sell rating and $51 price target. The analyst believes emerging software industry dynamics are favorable for long-term investors. Multi-product platforms have gained momentum, the industry is less cyclical, and unit economics outperform broader software, Goldman tells investors in a research note. However, for Cloudflare, the firm thinks the path to executing on $5B in annual recurring revenue will likely not be linear. Over the medium term, the risk/reward is skewed negative for the stock, writes the analyst.