11:36 AM EDT, 03/25/2025 (MT Newswires) -- Cloudflare's ( NET ) differentiated approach to AI and "strong" momentum in network security are two catalysts that could drive the company's revenue growth to 30% by 2028, BofA Securities said in a note Tuesday.

The new growth estimate is 250 basis points above consensus and 500 basis points higher than BofA's previous estimate, according to the note.

The firm said Cloudflare ( NET ) is positioned to be one of the "true AI winners in software," with a high probability of becoming the leader in AI-as-a-Service, which customers are looking to adopt in the next 12 months, BofA said.

The company's network security products are also capturing market share from competitors as enterprises look to modernize with software-based security solutions, BofA said.

BofA upgraded Cloudflare ( NET ) to buy from underperform, and increased the price target to $160 from $60.

Shares of Cloudflare ( NET ) were up more than 4% in recent trading.

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