Cloudflare (NYSE:NET) Price Target Cut to $360.00 by Analysts at Scotiabank

Key Points

• Scotiabank cut Cloudflare’s price target to $360 from $390 but maintained a “sector outperform” rating, implying 32.72% upside from the stock’s then-current price.
• Analyst opinions were mixed: Cloudflare had a “Moderate Buy” consensus rating and an average target of $332.82, alongside recent upgrades and downgrades.
• Cloudflare’s latest quarter beat expectations, with revenue up 39.2% year over year to $782.5 million and EPS of $0.38 versus the $0.34 consensus.

Cloudflare (NYSE:NET - Get Free Report) had its price target reduced by equities research analysts at Scotiabank from $390.00 to $360.00 in a report released on Friday, Benzinga reports. The brokerage presently has a "sector outperform" rating on the stock. Scotiabank's price objective points to a potential upside of 32.72% from the stock's current price.

Several other equities research analysts also recently commented on NET. Cantor Fitzgerald cut their price objective on Cloudflare from $340.00 to $310.00 and set a "neutral" rating for the company in a report on Friday. Craig Hallum upgraded shares of Cloudflare to a "buy" rating in a report on Tuesday. Raymond James Financial cut shares of Cloudflare from a "strong-buy" rating to an "underperform" rating in a research note on Tuesday. Robert W. Baird set a $330.00 price objective on shares of Cloudflare in a research report on Friday, August 7th. Finally, Citizens Jmp restated a "market outperform" rating and set a $394.00 price objective on shares of Cloudflare in a research note on Monday, August 31st. Twenty-six analysts have rated the stock with a Buy rating, seven have given a Hold rating and four have given a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $332.82.

Cloudflare Stock Up 10.9%

NET traded up $26.74 on Friday, hitting $271.25. 6,093,240 shares of the company were exchanged, compared to its average volume of 4,057,458. Cloudflare has a 12 month low of $158.83 and a 12 month high of $370.35. The company has a market cap of $95.88 billion, a PE ratio of -466.55, a PEG ratio of 206.44 and a beta of 1.37. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.82 and a current ratio of 1.82. The stock's fifty day moving average is $319.02 and its 200-day moving average is $249.31.

Cloudflare (NYSE:NET - Get Free Report) last posted its quarterly earnings results on Thursday, November 5th. The company reported $0.38 earnings per share for the quarter, beating analysts' consensus estimates of $0.34 by $0.04. The firm had revenue of $782.51 million during the quarter, compared to the consensus estimate of $737.16 million. Cloudflare had a negative return on equity of 3.88% and a negative net margin of 8.21%. The business's revenue was up 39.2% compared to the same quarter last year. During the same period last year, the company earned $0.27 earnings per share. Equities research analysts predict that Cloudflare will post 0.03 EPS for the current fiscal year.

Insider Activity at Cloudflare

In other Cloudflare news, insider Michelle Zatlyn sold 33,003 shares of the company's stock in a transaction on Wednesday, October 7th. The shares were sold at an average price of $348.29, for a total value of $11,494,614.87. Following the transaction, the insider directly owned 69,775 shares in the company, valued at $24,301,934.75. The trade was a 32.11% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Carl Ledbetter sold 5,000 shares of the stock in a transaction dated Monday, October 19th. The shares were sold at an average price of $304.40, for a total transaction of $1,522,000.00. Following the completion of the transaction, the director directly owned 868,073 shares in the company, valued at $264,241,421.20. The trade was a 0.57% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 259,057 shares of company stock worth $79,516,905. Company insiders own 10.66% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Jennison Associates LLC grew its position in shares of Cloudflare by 135.8% in the first quarter. Jennison Associates LLC now owns 4,394,484 shares of the company's stock valued at $906,758,000 after purchasing an additional 2,530,872 shares during the last quarter. Amundi increased its stake in shares of Cloudflare by 2.0% during the first quarter. Amundi now owns 1,707,256 shares of the company's stock worth $352,275,000 after purchasing an additional 32,804 shares during the period. Sumitomo Mitsui Trust Group Inc. lifted its holdings in Cloudflare by 4.9% during the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,046,812 shares of the company's stock worth $363,537,000 after purchasing an additional 48,956 shares during the last quarter. National Pension Service lifted its holdings in Cloudflare by 1.6% during the 2nd quarter. National Pension Service now owns 959,987 shares of the company's stock worth $235,466,000 after purchasing an additional 15,546 shares during the last quarter. Finally, Swiss National Bank boosted its stake in Cloudflare by 8.1% in the 1st quarter. Swiss National Bank now owns 927,200 shares of the company's stock valued at $191,318,000 after purchasing an additional 69,800 shares during the period. Institutional investors and hedge funds own 82.68% of the company's stock.

More Cloudflare News

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Q3 revenue rose 39.2% year over year to $782.5 million, topping expectations, while adjusted EPS of $0.38 also beat estimates. Why Cloudflare Stock Opened Higher Today
• Positive Sentiment: Management issued Q4 guidance well above consensus: revenue of $845–$846 million versus about $798 million expected, and EPS of $0.43 versus $0.31. Its FY 2026 outlook also increased to roughly $3.0 billion in revenue and $1.35 EPS, both ahead of analyst expectations. Cloudflare Q3 Earnings Beat Estimates
• Positive Sentiment: Enterprise adoption and AI platform usage were key growth drivers. Cloudflare doubled its active developer base to 10 million and reported its first revenue from AI bot traffic, supporting the case for continued demand for its platform. Why Cloudflare Stock Opened Higher Today
• Positive Sentiment: Wolfe Research upgraded NET to “outperform,” while Piper Sandler reaffirmed “overweight” and raised its price target to $337. Wolfe Research rating
• Neutral Sentiment: Analyst views were mixed: Needham lowered its target but maintained a “buy” rating, while Cantor Fitzgerald cut its target and kept a “neutral” rating. Cantor Fitzgerald rating
• Negative Sentiment: Gross margin pressure, slower growth in free cash flow than revenue, and a wider GAAP operating loss temper the upbeat growth story. Cloudflare Sales Up 39%, Gross Margin Falls
• Negative Sentiment: Cloudflare’s high valuation leaves little room for execution misses, and broader technology-sector selling recently pressured the shares despite strong company results. Cloudflare Just Had Its Best Quarter Ever

About Cloudflare

Cloudflare, Inc provides cloud-based services that help businesses and other organizations protect, connect and improve the performance of websites, applications and networks. Its global network delivers services including content delivery, domain name system management, and protection against distributed denial-of-service attacks and other cyber threats.

The company also offers web application security, bot management and Zero Trust services for securing access to applications and internal networks.

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