Cloudflare price target raised to $66 from $60 at Morgan Stanley

Morgan Stanley raised the firm’s price target on Cloudflare (NET) to $66 from $60 and keeps an Equal Weight rating on the shares. The median cybersecurity stock was up 70% last year, but the firm thinks the group has more room to run in 2024 as demand improves throughout year driven by rising threats, regulatory mandates and GenAI tailwinds, the analyst tells investors. Valuations in the group are above historical averages, but positive revisions should drive continued outperformance, argues the analyst, who notes that Palo Alto Networks (PANW) remains the firm’s Top Pick in the space, followed by Fortinet (FTNT), Tenable (TENB) and Crowdstrike (CRWD).