02:55 PM EDT, 06/25/2024 (MT Newswires) -- Cloudflare's ( NET ) risk/reward has turned more balanced, with share price down 12% since Q1 and encouraging go-to-market strategy and "refreshed" artificial intelligence opportunity, UBS said in a note.

According to the investment firm, Mark Anderson, who was appointed early this year as Cloudflare ( NET ) president of revenue, "spoke in depth at last month's investor briefing about upleveling the salesforce and [go to market] motion to more aggressively target enterprise customers."

In a report, UBS also said it sees a "more material near-term opportunity" from the software company's potential role as a DNS relay provider in Apple's (AAPL) AI Private Compute Cloud.

Also encouraging is the "more upbeat" sentiment of Cloudflare's ( NET ) partners and experts on the company's ability to compete in the SASE cloud architecture space.

UBS upgraded the stock to neutral from sell, and increased its price target to $82 from $76. The shares were up more than 1% in recent trading.

Price: 79.83, Change: +1.23, Percent Change: +1.56