Cloudflare (NET) is expected to benefit from the rise in agentic artificial intelligence traffic, as the company is well-positioned for edge computing due to its V8 isolate technology and strong adoption of its newer security products, Oppenheimer said in a note emailed Friday.
The brokerage said while the web infrastructure and security company has guided to a slowdown in the second half, the deceleration shows a shift toward pool of funds contracts rather than weakening demand.
The outlook appears "conservative" for it does not account for the potential gains from the "unprecedented growth" in agentic AI traffic, the firm added.
Oppenheimer reaffirmed its outperform rating and raised its price target to $380 from $330, citing further upside from agentic AI traffic.
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