Overview
- Cloudflare, which was upgraded to Overweight on Wednesday, rose about 5% after Piper Sandler set a $222 price target.
- The target suggests roughly 24% upside from about $178.65, the trading level cited in reports.
- Piper Sandler projects revenue of about $2.79 billion in 2026 and $3.6 billion in 2027, pointing to roughly 30% annual growth.
- The thesis leans on AI work at the network edge, direct ties to OpenAI and Anthropic, and recent launches such as Cloudflare Mesh for private AI networking, Agent Cloud for deploying AI agents, and Dynamic Workers for fast code execution.
- The note flags a rich valuation that requires growth in the high‑20% range for multiple years, while TD Cowen separately reiterates a Buy rating with a $265 target.