Cloudflare (NET) can achieve its 2025 target despite macro concerns in connection with the impact of tariffs, federal budget cuts and a potential recession risk, Oppenheimer said in a note Tuesday.

Citing its industry checks, the firm said it believes Cloudflare contracts are "highly unlikely" to get cut from the budget as they fall under mission-critical systems.

Oppenheimer noted that investors question the company's ability to meet its full-year outlook, which implies a "modest revenue acceleration" for the second half of the year.

"We believe this is a legitimate concern as far as the broader risk of a US recession, but beyond that we have confidence in Cloudflare's ability to deliver on its target and reaccelerate growth based on our aforementioned checks," the firm said.

Oppenheimer maintained the company's outperform rating and $150 price target.

Cloudflare shares rose more than 5% in recent Tuesday trading.

Price: 103.80, Change: +5.44, Percent Change: +5.53