Shares of cybersecurity firm Cloudflare (NET) are up 7% after analysts at U.S. investment bank Goldman Sachs (GS) double upgraded the stock to a “buy” rating from “sell” previously.
Goldman Sachs also nearly doubled its price target on Cloudflare’s stock to $140 U.S. from an earlier target of $77 U.S.
Analysts at the bank said they see “several positive catalysts” for Cloudflare’s stock heading into 2025, including in sales and marketing productivity.
Goldman Sachs is also bullish on Cloudflare’s edge computing solutions.
The raised price target and upgraded rating also reflect the investment bank’s increased confidence in Cloudflare’s growth trajectory and market position, as well as the recent reorganization of the company’s sales force, which is expected to drive positive free cash flow.
Goldman Sachs isn’t the only Wall Street firm to upgrade Cloudflare’s stock.
Analysts at Baird, Stifel Financial (SF) and Morgan Stanley (MS) have also raised their ratings on Cloudflare’s stock, citing anticipated revenue growth and improving profitability.
The stock of Cloudflare rose 36% during 2024 to currently trade at $107.68 U.S. per share.