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.
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.
This article first appeared on GuruFocus.免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。