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Benzinga
147 days

Cloudflare Analyst Turns Bullish On AI Momentum, Security Market Gains

1. BofA upgraded NET from Underperform to Buy, price target raised to $160. 2. NET's growth in AI and security projects a 30% annual increase over three years. 3. Network security products are gaining market share, with 33% penetration noted. 4. AI spending forecasted to rise by 8%, with significant implications for customer budgets. 5. Risks include execution challenges and the slow revenue growth of AI services.

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FAQ

Why Very Bullish?

BofA's upgrade reflects strong market confidence in NET's growth potential, evidenced by similar historical upgrades leading to significant stock price rallies.

How important is it?

The analyst's upgrade and growth predictions highlight NET's potential, affecting investor sentiment and stock performance significantly.

Why Long Term?

The projected 30% CAGR indicates sustained growth over several years, aligning with long-term investment timelines.

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