Investing.com -- Wells Fargo has named Cloudflare Inc (NYSE: NET ) its top stock pick for 2025 given its strong revenue growth prospects and expanding margins.

“We are naming Cloudflare our top pick for 2025, as we believe the company is well positioned to consistently outperform revenue expectations throughout 2025, while modestly expanding operating and free cash flow margin,” analyst wrote.

The brokerage raised its price target to $135 from $110 driven by “underappreciated” growth drivers like Zero Trust/SASE, Workers, and Workers AI.

Cloudflare’s Zero Trust/SASE solution, now accounting for two-thirds of new bookings, stands out in a rapidly growing market forecasted to reach $25 billion by 2027. The firm sees significant upside as Cloudflare continues to gain market share in this segment.

The Workers platform, initially launched as a serverless compute solution, has evolved into a comprehensive developer toolkit. Its extension, Workers AI, positions Cloudflare in the large language model space with offerings like vector databases and AI gateways.

Recent leadership hires, including Chief Revenue Officer Mark Anderson and President of Product and Engineering C.J. Desai, are seen as key to scaling Cloudflare’s revenue toward $5 billion.

Wells Fargo (NYSE: WFC ) also expects modest operating and free cash flow margin expansion in 2025, keeping Cloudflare well below long-term targets but on a strong growth trajectory.