** Software firm Cloudflare's NET.N shares rise 5.4% to $130.65 premarket

** Brokerage BofA Global Research upgrades stock to "buy" from "underperform", raises PT by $100 to $160

** New PT represents 29.1% upside to stock's last close

** Brokerage Cloudflare expected to become a leader in AIaaS, expected to be the preferred AI consumption method for enterprises

** AIaaS provides AI services and tools via cloud computing, enabling businesses and developers to use AI technologies without investing in or maintaining the underlying infrastructure

** Brokerage believes company offers cost-effective alternative to building AI capacity, attracting customers away from larger rivals like AWS from Amazon AMZN.O, Oracle ORCL.N , and Azure from Microsoft MSFT.O due to ease of use, scalability and utilization benefits

** "We think Cloudflare is poised to be one of the true AI winners in software"- brokerage

** 14 out of 34 brokerages rate the stock "buy" or higher, 16 "hold", 4 "sell" or higher; median PT $148.50, according to LSEG data

** As of last close, Cloudflare's shares up ~29% in past 12 months

(Reporting by Padmanabhan Ananthan)

((Padmanabhan.Ananthan@thomsonreuters.com))