What happened
Internet infrastructure specialist Cloudflare's (NET +3.78%) stock easily surmounted the hump of Hump Day. The company's share price enjoyed a nearly 4% lift on the day, comparing favorably to the slight decline of the S&P 500 index, on the back of an analyst price target raise.
So what
The raiser was Baird prognosticator Shrenik Kothari, who before market open Wednesday raised his Cloudflare price target to $64 per share. This was well up from his previous $59 estimation. The move was not accompanied by a recommendation change; Kothari still rates the shares an outperform (buy, in other words).
It wasn't immediately clear why the analyst made his adjustment to the specialty tech stock. He's hardly alone in thinking that Cloudflare has a sunnier future ahead of it. The company should continue to do well in a world in which ever more computing power is required by many types of businesses and individuals.
Like Kothari, many analysts tracking the stock are bullish on its prospects. Collectively, they are modeling a near tripling of per-share net profit this year over 2022, due in no small part to a more than 31% improvement in annual revenue.
NYSE: NET
Key Data Points
Now what
While it's unwise to base an investment decision only on the opinion of one pundit (or even several), it's a good sign when professionals following a stock are of similar mind about its potential. Cloudflare isn't the only company offering services like content delivery network (CDN) solutions and cloud computing, but it's proven adept at squeezing growth from them.
