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Here are comments from 3 analysts who attended the event.
Wells Fargo’s Andrew Nowinski (Overweight, PT to $60 from $70): “While the company has a number of growth drivers that should enable ~50%+ growth going forward, we believe the current market backdrop will limit multiple expansion.”
Morgan Stanley’s Keith Weiss (Equal Weight, $100): “Investor Day highlighted both the extent to which Cloudflare’s prolific innovation engine has expanded the market opportunity, now at $135 billion, and solid traction across the newer solution categories driving consistent expansion of NRR, now at 127%, and supporting a 50%+ revenue CAGR.”
Cowen’s Shaul Eyal (Outperform, $200): “Key takeaways include the following: (1) NET’s growing TAM opportunity of $115B provides the backdrop for sustainable >45% growth in the coming years, (2) NET expects to be free cash flow positive in 2H22, (3) improving new product attach rates reflect only the tip of the iceberg for up-sell/cross-sell opportunities, and (4) the march toward the high-end enterprise remains intact.”
NET stock is up 4.5% in pre-market Friday.
By Senad Karaahmetovic
