KeyBanc lowered the firm’s price target on Cloudflare to $94 from $132 and keeps an Overweight rating on the shares. Cloudflare posted a Q1 beat and in-line guidance, which the company characterized as prudent given increasing macro concerns from a quarter ago, the analyst tells investors in a research note. While the in-line guide with discussion of increasing macro concerns will likely pressure shares in the near-term provided its status as the most expensive software stock, this valuation is warranted given secular trends and increased focus on network access and security as well as longer duration edge/serverless compute and Cloudflare’s prime position to benefit from said trends, KeyBanc argues.
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