Mizuho has revised its outlook on Cloudflare (NET, Financial), upgrading the company to an "Outperform" rating from a previous "Neutral" stance. Despite a slight reduction in the price target from $140 to $135, the firm is optimistic about Cloudflare's future potential. Recent analyses showed stronger-than-anticipated developments, including robust pipelines, increased large-deal activity, and expanding adoption of Workers AI.
Cloudflare's ability to scale effectively and its strong culture of innovation were highlighted as significant contributors to its positive momentum. Mizuho sees promising opportunities in the field of artificial intelligence inferencing, which bolsters confidence in the company's long-term growth prospects. With Cloudflare's shares experiencing a 38% decline since mid-February, Mizuho believes the current valuation presents an attractive risk/reward profile for investors.
