Cloudflare, Inc. (NET) experienced a significant price increase, soaring 5.13% during intraday trading on Thursday.
The surge is primarily driven by RBC Capital Markets reaffirming its bullish outlook on the company. The brokerage reiterated its Outperform rating and $240 price target, highlighting that Cloudflare is well-positioned in the AI agent space as many top frontier models leverage its services. RBC also noted the company is likely ahead of schedule on its $5 billion revenue target by 2028 and pointed to an upcoming analyst day as a potential catalyst for further positive insights.
This rebound follows a decline in the prior session triggered by news of workforce reductions and Q2 revenue guidance that came in slightly below expectations. The positive analyst commentary appears to have outweighed those concerns, fueling the stock's recovery.
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