Cloudflare Cloud, AI Opportunities Buoy Sentiment, UBS Says

MT Newswires Live06-26

Cloudflare's (NET) risk/reward has turned more balanced, with share price down 12% since Q1 and encouraging go-to-market strategy and "refreshed" artificial intelligence opportunity, UBS said in a note.

According to the investment firm, Mark Anderson, who was appointed early this year as Cloudflare president of revenue, "spoke in depth at last month's investor briefing about upleveling the salesforce and [go to market] motion to more aggressively target enterprise customers."

In a report, UBS also said it sees a "more material near-term opportunity" from the software company's potential role as a DNS relay provider in Apple's (AAPL) AI Private Compute Cloud.

Also encouraging is the "more upbeat" sentiment of Cloudflare's partners and experts on the company's ability to compete in the SASE cloud architecture space.

UBS upgraded the stock to neutral from sell, and increased its price target to $82 from $76. The shares were up more than 1% in recent trading.

Price: 79.83, Change: +1.23, Percent Change: +1.56

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