- Wells Fargo analyst Andrew Nowinski upgraded Cloudflare, Inc (NYSE:NET) to Overweight from Equal Weight with a price target of $65, up from $62.
- Cloudflare shares have declined 65% YTD while NASDAQ declined ~34% YTD, creating a better entry point.
- He believed Cloudflare benefited from the increasing focus on consolidation to reduce costs and gain share from point product vendors.
- Cloudflare’s investments in the channel paid off, as he noted a solid uptick in demand trends in his 3Q22 Reseller Survey.
- Finally, Cloudflare will likely generate positive Free Cash Flow in the back half of CY22, and he believed the company would remain above the “Rule of 40” in the future.
- The price target multiple is a premium to the peer group average but justified due to higher growth assumptions.
- Mizuho analyst Gregg Moskowitz lowered the price target on Cloudflare to $65 from $85 and maintained a Neutral rating.
- Software stocks “remain besieged” by high inflation, rising yields, supply chain constraints, currency headwinds, and the ongoing Russia-Ukraine war.
- While fundamental checks “have been healthy overall,” they have “again picked up indications of uneven demand.”
- Though he cut the price target, Moskowitz found that software shares have priced in many risks.
- Price Action: NET shares traded higher by 14% at $52.09 on the last check Monday.
Tecnoglass Tightens FY2023 Sales Guidance from $830M – $855M to $835M – $848M
Full Year 2023 Outlook
Santiago Giraldo, Chief Financial Officer of Tecnoglass, stated, "We see our business performing exceptionally well in a challenging market with share gains driving double-digit
