On July 7, Cloudflare rose 3.01% in pre-market trading, trading at $255.72/share, with turnover of $1.9405 million. The move was driven by Scotiabank issuing a significant upgrade of the stock's rating from Sector Perform to Sector Outperform, while raising its target price from $225 to $300.
The upgrade reflects strong confidence in Cloudflare's growth trajectory. The company has been building momentum through multiple catalysts, including its AI crawl management policy announced in early July that introduces a pay-per-use model for AI agent and training crawler access, strengthening its position as an internet traffic gatekeeper. Additionally, a partnership with Anthropic to deliver secure execution environments for Claude agents, a 20% workforce reduction signaling an AI-first operating model pivot, and internal AI usage surging 600% have collectively bolstered the bull case. RBC Capital Markets and Oppenheimer have both noted the company remains ahead of schedule on its $5 billion revenue target by 2028.
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