Royal Bank Raises Price Target on Cloudflare to $346.00

Royal Bank Of Canada has increased its price target for Cloudflare to $346.00 per share, representing a potential upside of 16.27% from the company's current price.

This move follows a series of positive developments for Cloudflare, including beating analysts' estimates on revenue and earnings in its second-quarter results. The company reported revenue of $696.1 million, up 35.9% year over year, and adjusted EPS of $0.29, exceeding expectations.

The analyst's revised price target reflects improved estimates for AI infrastructure demand and Cloudflare's execution. However, some caution is warranted, as the company continues to report a negative net margin and elevated investor expectations may pose challenges in sustaining rapid growth.