Jefferies analyst Brent Thill upgraded Cloudflare (NET) to Buy from Hold with a price target of $50, up from $27.
The stock closed Monday up $1.64 to $37.36.
The company is "disrupting" legacy network and web security vendors with its "unique" cloud-based technology architecture and freemium model, Thill tells investors in a research note.
The analyst, who's not making a call on the upcoming quarterly report, believes Cloudflare could sustain "hypergrowth for multiple years" as it launches more security services and enterprise adoption further accelerates, "justifying a premium valuation."
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