Cloudflare stock outlook: Oppenheimer sees 17% upside

Cloudflare Inc (NYSE: NET) has already rallied a whopping 80% over the past seven months but an Oppenheimer analyst still sees further gains ahead.

Cloudflare stock has upside to $85

On Tuesday, Timothy Horan upgraded the content delivery company to “outperform”. His $85 price objective suggests another 17% upside from here.

The Oppenheimer analyst turned bullish on Cloudflare stock today because he expects the New York listed firm to benefit from edge computing.

The said platform has seen interesting use cases and solid demand since its inception some two months ago. Earlier this month, Anonymous Sudan – a highly prolific threat group said it was behind the sophisticated DDoS campaign that recently took down Cloudflare’s website.

Cloudflare could benefit from AI tailwinds

Timothy Horan recommends owning Cloudflare stock also because it is well-positioned to benefit from the rapid growth in artificial intelligence. His research note reads:

The Oppenheimer analyst is convinced that the AI tailwinds will help the California-based company overcome concerns related to free cash flow and gross margin compression.

His bullish note arrives only weeks after Cloudflare reported market-beating results for its fiscal third quarter. The cloud stock still declined because the management issued full-year guidance that slightly missed consensus estimates.