Morgan Stanley Maintains a Buy on Cloudflare (NET)

​Cloudflare, Inc. (NYSE:NET) is one of the Best Software Stocks to Buy According to Wall Street Analysts. On January 28, Keith Wess from Morgan Stanley reiterated a Buy rating on the stock with a $258 price target. Earlier, on January 27, Shaul Eyal from TD Cowen also reiterated a Buy rating on the stock with a $265 price target.

​The ratings come ahead of the company’s Q4 2025 earnings release, scheduled for February 10. Management expects Q4 revenue in the range of $588.5 million to $589.5 million, along with a non-GAAP income of $83 million to $84 million. Wall Street expects Cloudflare, Inc. (NYSE:NET) to post roughly $591.36 million as quarterly revenue with a GAAP EPS of negative $0.03.

​Analysts at TD Cowen noted that bullish sentiment is based on the company’s AI infrastructure gaining momentum. The firm finds the company’s AI infrastructure, especially the Cloudflare Tunnel, to be one of the most secure ways of deploying AI agents online. The firm noted that the system is used by more than 80% of the top 50 AI companies. Moreover, TD Cowen noted that the buzz around Clawdbot has linked its popularity to the company’s edge solutions for AI agent deployment and security.

​TD Cowen expects Cloudflare, Inc. (NYSE:NET) to beat earnings expectations in Q4 2025.

​Cloudflare, Inc. (NYSE:NET) operates as a cloud services provider. Its composable platform and network offer advanced PQC (post-quantum cryptography) capabilities, which enable companies to protect users, applications, and networks across all endpoints and infrastructure.

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.