Cloudflare (NET) Gains Upgrade Following Strong Q4 Execution and Growth

Cloudflare, Inc. (NYSE:NET) ranks among the best stocks to buy now for long-term growth. On February 11, Baird raised its price target for Cloudflare, Inc. (NYSE:NET) from $230 to $260, upgrading the company from Neutral to Outperform. The update came after Cloudflare’s fourth-quarter earnings, which Baird called the “strongest confirmation yet” that the company’s growth vectors are growing exponentially at the same time.

According to Baird, Cloudflare, Inc. (NYSE:NET) showed enhanced go-to-market efficiency and execution advantages, with its net retention rate reaching 120%, signifying robust client growth. Despite a substantial rise in demand, the firm considers Cloudflare’s fiscal year 2026 guidance of 28–29% year-over-year growth to be “prudent”.

Baird claims that while hyperscaler disruption is occurring at the infrastructure layer, agentic-AI is providing Cloudflare, Inc. (NYSE:NET) with a “step-function increase” in visitor numbers and monetization volume. Additionally, the firm cited “pool-of-funds adoption” as a means of establishing long-lasting spending patterns.

Cloudflare, Inc. (NYSE:NET) is a cloud-based cybersecurity, connectivity, and website management company that also offers routing and developer security solutions. It operates in numerous main categories, including Security Solutions, Performance Enhancement, Reliability, Zero Trust Infrastructure, and others.

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