Morgan Stanley Maintains a Buy on Cloudflare (NET)

Core Viewpoint - Cloudflare, Inc. (NYSE:NET) is recognized as a strong investment opportunity by Wall Street analysts, with multiple buy ratings and optimistic price targets ahead of its upcoming earnings release [1][2]. Group 1: Analyst Ratings and Price Targets - Keith Wess from Morgan Stanley reiterated a Buy rating with a price target of $258 [1] - Shaul Eyal from TD Cowen also maintained a Buy rating, setting a price target of $265 [1] Group 2: Earnings Expectations - The company anticipates Q4 2025 revenue between $588.5 million and $589.5 million, with non-GAAP income projected at $83 million to $84 million [2] - Wall Street forecasts quarterly revenue of approximately $591.36 million, with a GAAP EPS of negative $0.03 [2] Group 3: AI Infrastructure and Market Position - Analysts at TD Cowen highlight the bullish sentiment surrounding Cloudflare's AI infrastructure, particularly the Cloudflare Tunnel, which is deemed highly secure for deploying AI agents [3] - The system is utilized by over 80% of the top 50 AI companies, indicating strong market adoption [3] - The popularity of Clawdbot is linked to the company's edge solutions for AI agent deployment and security [3] Group 4: Company Overview - Cloudflare operates as a cloud services provider, offering a composable platform and advanced post-quantum cryptography (PQC) capabilities to protect users, applications, and networks [4] - TD Cowen expects Cloudflare to exceed earnings expectations in Q4 2025 [4]