Wall Street Analysts See a 26.38% Upside in Cloudflare (NET): Can the Stock Really Move This High?

Core Viewpoint - Cloudflare (NET) shows potential for upside with a mean price target of $249.64, indicating a 26.4% increase from its current price of $197.53 [1] Price Targets and Estimates - The mean estimate consists of 28 short-term price targets with a standard deviation of $48.44, suggesting variability in analyst predictions [2] - The lowest estimate is $117.00, indicating a potential decline of 40.8%, while the highest estimate is $318.00, reflecting a potential increase of 61% [2] - A low standard deviation among price targets indicates a high degree of agreement among analysts regarding the stock's price movement [9] Analyst Sentiment and Earnings Estimates - Analysts are optimistic about Cloudflare's earnings prospects, as indicated by a positive trend in earnings estimate revisions [4][11] - The Zacks Consensus Estimate for the current year has increased by 2.1% over the past month, with one estimate rising and no negative revisions [12] - Cloudflare holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] Caution on Price Targets - While price targets are commonly referenced, they can mislead investors, as empirical research shows they rarely indicate actual stock price movements [7][10] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [8]