RBC Capital raised its price target on Cloudflare (NYSE:NET) to $210 from $155, maintaining an Outperform rating and citing continued momentum in the company’s growth initiatives, particularly its serverless platform Workers.
While acknowledging that Cloudflare shares have climbed 54% since the last earnings report, RBC remains bullish on the company’s long-term trajectory. The firm expects Cloudflare’s recent success in cybersecurity solutions—especially within Secure Access Service Edge (SASE)—to continue resonating with enterprise clients.
However, the primary focus remains on the expansion of Workers, Cloudflare’s edge computing and serverless platform, which showed strong adoption in the first quarter of 2025. RBC anticipates this momentum will translate into further revenue growth and potentially lead management to raise full-year guidance when it reports upcoming results.
Despite the significant year-to-date rally, RBC views Cloudflare as one of its top long-term ideas, citing favorable industry dynamics and the company’s leadership in edge infrastructure as key drivers of future performance. In the near term, the stock’s sharp run-up leaves the setup more neutral, but RBC remains confident in the company’s strategic positioning for sustained growth.
