Needham analyst Alex Henderson initiated Cloudflare with a Buy rating and a price target of $22. The analyst is positive on the company's "superb" technology intended to improve performance, security and programmability across the internet. Henderson adds that Cloudflare's cloud-driven business model offers "broad relevance" to major trends in the economy, including a digital transformation to the cloud, lowered latency required by cloud applications, and improved connection security. The analyst contends that the company can sustain a revenue growth of 30%-40% per year over the next 3-5 years while expanding its margins and increasing its cash flows.