Why Does RBC Capital Remain Bullish On Cloudflare (NET)?

Cloudflare, Inc. (NYSE:NET), with important hedge money interest, ranks among the 10 champion SaaS stocks to bargain according to hedge funds. As of Q1 2026, 84 hedge funds held bullish positions successful the stock, representing $3.55 cardinal successful aggregate value.

As Cloudflare, Inc. (NYSE:NET)’s relation successful AI-agent infrastructure continues to turn and its way toward semipermanent profitability targets accelerates, the banal retains expert confidence.

On May 22, 2026, RBC Capital reiterated an “Outperform” standing and $240 terms people connected Cloudflare, Inc. (NYSE:NET), pointing to the company’s June 9 Analyst Day arsenic a imaginable catalyst.

The steadfast said absorption is expected to absorption connected Cloudflare’s AI and agentic positioning, portion economics of its Acts, and the way to Rule of 50 economics. RBC besides said Cloudflare appears up of docket toward its anterior $5 cardinal 2028 gross target, with the institution generating $2.17 cardinal successful gross successful FY25, up astir 29.94% year-over-year. The steadfast argued that existing unreality infrastructure was designed for the desktop and smartphone epoch and breaks nether the demands of AI agents, a dynamic it believes positions Cloudflare, Inc. (NYSE:NET) good for what comes next.

That presumption aligns with a merchandise announcement from May 19, 2026, successful which Cloudflare, Inc. (NYSE:NET) said it had integrated with Anthropic’s Claude Managed Agents to supply a fast, isolated execution situation for autonomous codification delivery.

The integration lets developers tally their cause loop connected the Anthropic level portion utilizing Cloudflare to execute code, unafraid connections, and grip customized instrumentality calls. Cloudflare said builders tin standard cause workflows globally portion controlling entree to backstage backends. Anthropic described the setup arsenic decoupling the encephalon from the hands, with the halfway cause loop moving connected Anthropic’s broadside and the execution infrastructure moving connected Cloudflare, Inc. (NYSE:NET).

Cloudflare, Inc. (NYSE:NET) is simply a starring connectivity unreality institution that specializes successful improving the security, performance, and reliability of websites and applications.

While we admit the imaginable of NET arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock. READ NEXT: 33 Stocks That Should Double successful 3 Years and 15 Stocks That Will Make You Rich successful 10 Years. Disclosure: None. Follow Insider Monkey connected Google News.