According to JPMorgan (NYSE: JPM) analyst Samik Chatterjee, Cloudflare (NYSE: NET) stock’s 26% 30-day drop has turned it into an enticing buy, especially with the company now having an opportunity to significantly accelerate its revenue growth.
Specifically, the Wall Street expert replaced his previous ‘Neutral’ rating of NET shares with a new ‘Overweight’ – ‘Buy’ – recommendation, explicitly citing the more attractive valuation following the October correction.
Additionally, Chatterjee highlighted that Cloudflare remains in an excellent spot to take advantage of the scaling of Act I and Act II – the firm’s strategic business and market expansion program – and could ‘accelerate revenue growth in the medium term to 35%-plus.’
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Still, despite the circumstances and the rating upgrade, the analyst from JPMorgan refrained from changing his previous NET stock $350 12-month price target.
Simultaneously, Barclays’ Saket Kalia expressed a similarly bullish stance toward Cloudflare shares on Tuesday, November 3, albeit with a higher $400 forecast.
Wall Street sets Cloudflare stock price target for the next 12 months
Zooming out, the two most recent NET equity revisions are largely in line with the overall Wall Street attitude toward NET equity, as expressed by the notes issued in the last three months.
Cloudflare stock is regarded as a ‘Strong Buy’ and boasts twenty-two positive, four ‘Hold’, and one ‘Sell’ recommendation, per the data Finbold retrieved from TipRanks on Tuesday,
November 3.
The average NET share price target for the next 12 months is slightly higher than JPMorgan’s estimate and forecasts a 35.67% rally from the latest close at $265.17 to $358.77.
Cloudflare stock price performance
Elsewhere, investors appear to already be turning more bullish on Cloudflare as the equity is, after a 26.24% decline in the last 30 days, trading 3.33% above the Monday evening price of $265.17 and at $274 in the pre-market.
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Still, while valuation concerns have become somewhat smaller following the October correction, NET stock’s – and the stock restructuring program’s – future remains somewhat uncertain.
The recent instability of the artificial intelligence (AI) boom is likely to keep bearing heavily on the broader market for the foreseeable future, while the Midterm elections inject additional volatility.
Lastly, November 5 could prove the nearest decisive date that could either confirm the latest bullish turn or extend the previous downtrend, as Cloudflare is due to report its quarterly earnings after the evening bell.
Featured image via Shutterstock
