Cloudflare Stock Jumps Pre-Market After BofA Issues Double Upgrade Citing AI And Security Gains – Retail Turns Bullish

Cloudflare (NET) shares surged 6.5% in pre-market trade on Tuesday after Bank of America (BofA) double-upgraded the stock to ‘Buy’ from ‘Underperform,’ raising its price target to $160 from $60. The new target suggests a 29% upside from Monday’s close.

According to TheFly, BofA sees two key drivers behind Cloudflare’s growth acceleration – its "differentiated" approach to artificial intelligence and its increasing momentum in network security, particularly in Secure Access Service Edge (SASE) solutions.

BofA placed a "high probability" on Cloudflare emerging as a leader in AI-as-a-Service.

According to a report by CNBC, BofA analyst Madeline Brooks said the company’s gains in AI and network security could grow Cloudflare’s three-year compound annual growth rate to 30% by 2028.

“According to our survey, network security products are currently 33% penetrated, with over 50% of new spending in the next 12 months expected to go toward security solutions,” Brooks said, noting that customers are shifting toward software-based security options, potentially at the expense of competitors like CheckPoint and Cisco.

Meanwhile, Wall Street remains divided on Cloudflare. Of the 35 analysts covering the stock, 17 maintain a ‘Hold’ rating, while 15 rate it as a ‘Buy’ or equivalent. The stock’s average price target stands at $139.15, suggesting a 12.3% upside from Monday’s close.

Cloudflare retail sentiment and message volume on March 25 as of 6:55 a.m. ET | Source: Stocktwits

On Stocktwits, retail sentiment around Cloudflare’s stock improved to ‘bullish’ from ‘neutral’ territory a day ago, accompanied by rising levels of chatter. 

One user said they’re bullish on the stock because of the company’s steadily growing revenue and positive earnings.

Another user joked that BofA should have issued a triple upgrade.

Cloudflare’s stock has gained nearly 30% over the past 12 months and is up over 8% in 2025.

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