Cloudflare Stock Surges Following Rare Double Upgrade by Bank of America

Bank of America elevates Cloudflare to 'buy' with a $160 price target, citing its potential as a leader in AI-driven software solutions.

Bank of America issued a rare double upgrade for Cloudflare, raising its rating from 'underperform' to 'buy' and increasing the price target from $60 to $160.
Cloudflare's AI-as-a-Service offering is gaining traction, with customers increasingly opting for it over competitors like AWS, Oracle, and Microsoft Azure.
A Bank of America survey projects an 8% increase in AI spending by Cloudflare customers over the next year, averaging $100,000 per client.
The company is expected to achieve 30% growth by 2028, driven by its momentum in AI and cybersecurity services.
Despite the upgrade, Cloudflare's high valuation continues to divide analysts, with less than 40% labeling the stock a 'buy.'