Cloudflare (NET, Financials) shares gained after Bank of America NYSE:NET)%20was%20double%20upgraded,break%20down%20the%20analyst's%20note." target="_blank" rel="noreferrer noopener">issued a rare double upgrade, moving the cybersecurity firm's stock rating from underperform to buy and raising its price target to $160 from $60.

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The goal of the investment bank suggests around 23% upside from Cloudflare's latest closing price of $129.60. With hopes for the firm to expand 30% by 2028, Bank of America ascribed its changed view to Cloudflare's ability to gain from more investment on cybersecurity services and artificial intelligence.For some companies looking for substitutes to bigger cloud providers like Amazon Web Services (AMZN, Financials), Microsoft Azure (MSFT, Financials), and Oracle (ORCL, Financials), Cloudflare's AI-as-a-Service offering has become the favored choice. A Bank of America client poll indicates that over the next year, users of Cloudflare's services are likely to raise their AI-related spending by 8%, to an average of $100,000 per business client.Backed by a record amount of major client purchases, the firm lately reported fourth quarter outcomes superior than anticipated. In the very competitive AI infrastructure sector, Cloudflare has been marketing itself as a more flexible and affordable option while growing its client base.The upgrading comes as investors seek businesses with exposure to generative AI applications and associated cybersecurity improvements, domains where Cloudflare has recently invested more.