Cloudflare Inc. (NET:NYE) Analysts see big upside with $103 target

STA Research
by: STA Research

Based on the Cloudflare stock forecast from 17 analysts, the average analyst Cloudflare stock price target is USD 103.44 over the next 12 months. Cloudflare Inc’s average analyst rating is Buy. Stock Target Advisor’s own Cloudflare stock forecast is Slightly Bearish, which is based on 4 positive signals and 7 negative signals. At the last closing, Cloudflare stock price was USD 58.43Cloudflare stock price has changed by +9.78% over the past week, +12.53% over the past month and -51.89% over the last year.

CloudFlare, Inc. operates as a cloud services provider that delivers a range of services to businesses worldwide. The company offers an integrated cloud-based security solution to secure a range of combination of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and IoT devices.  The company serves customers in the technology, healthcare, financial services, consumer and retail, and non-profit industries, as well as government. CloudFlare, Inc. was incorporated in 2009 and is headquartered in San Francisco, California.

 

What we like:

High market capitalization:

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns:

Cloudflare stock forecast has performed well, on a risk adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Positive cash flow:

Cloudflare stock forecast has shown positive total cash flow in the most recent four quarters.

Superior Revenue Growth:

Cloudflare stock forecast has shown top quartile revenue growth in the previous 5 years compared to its sector.

 

What we don’t like:

High volatility:

The total returns for Cloudflare stock price are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to book value:

Cloudflare stock price is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis:

Cloudflare stock price is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Highly leveraged:

Cloudflare stock forecast shows that the company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the NET stock forecast and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Negative earnings:

Cloudflare stock price had negative total earnings in the most recent four quarters.

Negative free cash flow:

Cloudflare stock price had negative total free cash flow in the most recent four quarters.

Low Earnings Growth:

Cloudflare stock forecast has shown below median earnings growth in the previous 5 years compared to its sector

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