BTIG analyst Edward Parker initiated Cloudflare with a Buy rating and a price target of $20, saying the company offers a "rare opportunity" within infrastructure software as an "innovator" in the Content Delivery Network market. The analyst is positive on Cloudflare's ability to leverage a single software stack on "top of scale-out commodity hardware", which has supported its relative margin outperformance. Parker adds that the company's ability to maintain a best-in-class margin profile is "impressive" given its status as a price aggressor and the "subsidization" of its large user base. The analyst further notes that Cloudflare's position as a early-mover on a "significant architectural re-think in IT" warrants its premium valuation within the "disrupting SaaS vendors" category.