Cloudflare price target raised to $77 from $70 at Needham

Needham analyst Alex Henderson raised the firm’s price target on Cloudflare to $77 from $70 and keeps a Buy rating on the shares after its Q4 earnings beat. The company is "in a class by itself" in delivering strong Revenue, ARR, and cash flow results while offering "strong yet demonstrably conservative" guidance, the analyst tells investors in a research note. The firm remains positive on the name while citing the newlyy minted FedRamp authorization, new unexpected strong growth opportunities in AI adoption particularly around R2 and Workers, robust uptake of new Security offerings, an expectation of acceleration in DBNR driven by new product uptake, rebounding growth in APAC, and improved pricing at the low-end of the market.