Goldman Sachs has significantly upgraded Cloudflare’s stock from sell to buy and raised its price target to $140 from $77, suggesting a 30% upside. Analyst Gabriela Borges cited improved free cash flow, leadership optimism, and sales productivity enhancements as catalysts for future growth. She projected 10% cost reductions in 2025-2026 could boost revenue estimates by 4% to 7%. Borges also highlighted potential monetization opportunities for Cloudflare’s Act III products, driven by AI advancements. Despite divided analyst opinions, shares rose over 5% following the announcement, reflecting a 35% increase in the past year, outperforming the market.
