RBC and Stifel Stay Bullish on Cloudfare (NET)

Cloudflare, Inc. (NYSE:NET) is one of the 10 Best NYSE Stocks to Buy According to Analysts. On January 5, RBC Capital reiterated its Outperform rating on Cloudflare, Inc. (NYSE:NET) with a price target of $265 on the stock.

Previously, on December 17, Stifel also reaffirmed its Buy rating on Cloudflare, Inc. (NYSE:NET), noting that the company is in a good position as the demand for AI security solutions grows. Stifel pointed out that organizations are increasingly using AI tools, which is creating new security challenges like unauthorized use, data loss, and AI output risks like hallucinations and prompt injection. These can lead to serious operational and regulatory risks.

Stifel believes that AI security is expected to play an increasingly important role in 2026 as generative AI and agentic AI are deployed more widely in production environments. Areas like visibility/monitoring, data security, model security, and governance are expected to see rising demand.

The research firm also highlighted the importance of strong Identity, Data, Cloud, and Zero Trust Security as organizations move toward AI-first strategies. Stifel noted that Cloudflare, Inc. (NYSE:NET) is well-positioned to benefit from this trend as threat actors increasingly use AI to accelerate and automate cyberattacks.

Cloudflare, Inc. (NYSE:NET) is a leading connectivity cloud company that specializes in improving the security, performance, and reliability of websites and applications.

While we acknowledge the potential of NET as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.