#3 - Cloudflare (NYSE:NET)
Another tech stock that is looking a little toppy is Cloudflare (NYSE:NET). Cloudflare is making noise because of its network-as-a-service (NaaS) program, Cloudflare One, which offers cloud-based security, performance, and control through a single user interface.
Cloud stocks have been among the largest movers this year, and with good reason. Companies are becoming increasingly remote. And that means access to the cloud is imperative. Cloudflare continues to enjoy a consensus buy rating. However, the price target shows a potential downside of nearly 28% from the stock’s current level at around $58.
The concern seems to be if Cloudflare can continue to record the meteoric growth it’s been enjoying. It had a 77% growth margin in the first quarter of this year. However, if the company’s growth “slows down” to a level around 25x sales, the current consensus price target would be justified. Cloudflare reports earnings in early November, which may give investors a better picture of the company’s growth prospects.
About Cloudflare
Cloudflare, Inc operates as a cloud services provider that delivers a range of services to businesses worldwide. The company provides 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; and website and application security products comprising web application firewall, bot management, distributed denial of service, API gateways, SSL/TLS encryption, script management, security center, and rate limiting products.
Read More - Current Price
- $73.36
- Consensus Rating
- Hold
- Ratings Breakdown
- 10 Buy Ratings, 9 Hold Ratings, 4 Sell Ratings.
- Consensus Price Target
- $91.87 (25.2% Upside)
