Cloudflare rises after Barclays intiates coverage with 'overweight'

Shares of cloud firm Cloudflare NET.N up 4.3% at $205.64

Barclays initiates coverage with "overweight" rating and PT of $235, representing upside of 19.2% to stock's last closing price

Brokerage says NET's homogeneous network supports 20% of internet with each of its product areas leveraged to "secular trends like growing cloud adoption, cybersecurity, AI inference and 'no click' search."

End market for application performance and security is worth nearly $20 billion annually and growing in healthy high single digit range and NET has doubled its market share since 2021, Barclays adds

Brokerage notes that NET's business has natural leverage that can scale margins and provide additional valuation support over time

Up to last close, NET had gained ~83% YTD