Cloudflare Shares Decline Following Analyst Price Target Cut Ahead of Earnings
Cloudflare (NET) shares experienced a significant intraday decline, dropping as much as 6% on Monday. The downward pressure was triggered by a bearish note from Jefferies analyst Joe Gallo, who maintained a 'hold' rating but lowered his price target for the stock from $350 to $320. While Gallo anticipates increased demand for cloud services this quarter, he cautioned that market expectations may be set too high. Wall Street consensus estimates currently project revenue of $739 million and adjusted EPS of $0.34, which exceeds Cloudflare's own management guidance. Despite the immediate stock volatility, the company continues to demonstrate its value in the cybersecurity sector, recently deploying critical protections against a widespread PHP website vulnerability that affected a vast portion of the internet.
Tickers: $NET
Topics: Analyst Rating Cybersecurity Earnings Expectations Stock Price Movement
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