Cloudflare could emerge as “one of the true ‘AI winners’ in software,” according to Bank of America. The bank issued a rare double upgrade, taking the cybersecurity company to buy from underperform. BofA’s $160 per share price target, up from $60, calls for 29% upside moving forward. Analyst Madeline Brooks said two key catalysts, the company’s “differentiated” approach on artificial intelligence and its ramping up of network security, as drivers for the stock’s growth ahead. NET YTD mountain Cloudflare stock in 2025. “We place a high probability on Cloudflare becoming the leader in AI-as-a-Service (AIaaS), which we expect will be the AI consumption method of choice for Enterprises,” Brooks said. The analyst said both the company’s gains in AI and network security could grow Cloudflare’s three-year compound annual growth rate to 30% by 2028. Her previous forecast called for 25%. “Cloudflare’s network security offerings are showing strong momentum and capturing market share from competitors,” She said. “According to our survey, network security products are currently 33% penetrated, with over 50% of new spending in the [next 12 months] expected to go to security products, replacing rivals such as CheckPoint and Cisco, as customers look to modernize network security with software solutions,” Brooks added. Analysts are split on Cloudflare shares. LSEG shows that 14 of the 34 covering the stock rate it a buy or strong buy. Another 16 have a hold rating on it, while four assigned underperform and sell ratings on Cloudflare.
