The recent slide in Cloudflare shares has created a deal that is too good to pass up, according to Credit Suisse. Analyst Phil Winslow upgraded Cloudflare to outperform from neutral, saying in a note to clients Friday that the company's revenue growth would beat expectations and lead to a rebound in the stock. "We expect Cloudflare to sustain significant revenue growth—within the high 40% to +50% range—for multiple years, which is not reflected in conservative consensus estimates," Winslow wrote. "Given Cloudflare's unique positioning and management's vision and execution, we believe the recent selloff in the stock presents an attractive entry point, as the stock's current valuation underappreciates the long-term value creation potential." High-growth tech stocks have been hit hard in recent weeks, and Cloudflare is no exception. Its stock has fallen nearly 29% since the end of December. Credit Suisse lowered its price target on the stock to $140 per share from $205. Still, the new target is nearly 50% above where the stock closed Thursday. Shares rose 0.6% in premarket trading Friday. Cloudflare is scheduled to release its fourth-quarter earnings on Feb. 10. — CNBC's Michael Bloom contributed to this report.
Matthew Prince of CloudFlare.
The recent slide in Cloudflare shares has created a deal that is too good to pass up, according to Credit Suisse.