Cloudflare Inc. (NET) got a price target cut at Cantor Fitzgerald amid a broader decline in stocks of software companies.
Cloudflare shares fell over 10% in Thursday’s regular trading session and declined another 0.5% during after-market hours amid a wider rout in U.S. equities due to Trump’s reciprocal tariffs policy.
According to The Fly, Cantor has a ‘Neutral’ rating on Cloudflare, but it cut the price target to $120 from $149, implying a 12% upside from Thursday’s closing price.
The brokerage updated its outlook for Cloudflare as part of its broader note for infrastructure and artificial intelligence (AI) software companies.
It cited a sharp pullback in software stocks as the reason for cutting Cloudflare’s price target – the iShares Expanded Tech-Software Sector ETF (IGV) has declined over 13% year-to-date (YTD), while Cloudflare’s stock has declined 0.3% during this period.
However, not all analysts are pessimistic about Cloudflare. Analysts at Goldman Sachs added the stock to their Conviction List on Tuesday, citing a combination of improving sales productivity and visible traction in the product cycle.
The brokerage has a price target of $161 with a ‘Buy’ rating.
Earlier in March, Bank of America (BofA) Securities issued a double upgrade for the stock, citing AI and security gains.
While analyst sentiment around Cloudflare is mixed, retail investors on Stocktwits remained ‘bearish’ about the company’s prospects.
One bearish user called the stock “expensive.”
According to Koyfin, the average price target for Cloudflare is $141.52, implying an upside of 32% from current levels.
Of the 35 analysts covering the stock, 16 have a ‘Strong Buy’ or ‘Buy’ rating, 17 recommend ‘Hold,’ while two brokerages have a ‘Sell’ or ‘Strong Sell’ suggestion.
Cloudflare’s stock has gained over 15% in the past year.
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