**Yunyao Company’s Net Shares Surge Following Goldman Sachs Upgrade**
The shares of Yunyao Company’s net (NET) surged on Thursday after Goldman Sachs analyst Gabriela Borges upgraded the stock to “buy” from “sell” and raised the price target to $140 from $77. Borges attributed the upgrade to the company’s performance in 2024, stating that the market views each company as a platform rather than a single product.
**Cloudflare’s Two Catalysts**
The analyst pointed to two catalysts for Cloudflare’s stock in 2025. Firstly, Borges believes that the company will see improved sales and marketing productivity cycles after two years of development to better address platform sales in the enterprise. Secondly, Cloudflare is expected to move away from its core edge network architecture and leverage the advantages applied to developer services and Act III products, which will appeal to new AI inference use cases.
**Revenue Forecast and Price Target**
The price target increase reflects a multiple jump from 11x to 20x (Q5-Q8 revenue), and Borges raised his 2026 revenue forecast by 2% due to his views on sales productivity and the third act. The analyst also revised his 2024, 2025, and 2026 EPS estimates to $0.75, $0.90, and $1.32 from $0.75, $0.86, and $1.12 due to slight margin expansion.
**Checkpoint Software Technology’s Upgrade**
Borges also raised the price target for Checkpoint Software Technology (CHKP) to $207 from $204. The analyst highlighted 2025 as a year of incremental investment for the company, as the new CEO will evaluate growth priorities and the company launches new SASE products. However, Borges believes that there will be pressure on EPS growth in 2025, which the stock typically tracks.
**Comparison to Peers and S&P 500**
Borges compared Checkpoint to software companies with revenue growth of less than 10% and earnings per share sufficient to be valued using the price-to-earnings method. He noted that Check Point offers similar revenue growth (6% Wall Street forecast vs. 6% for 2025 peers) but is more consistent with the Rule of 40 (About 47 to 35). The analyst also used the S&P 500 as a point of comparison, stating that the S&P 500 is trading at 22 times 2025 earnings per share, with earnings per share growing about 10%; relative to the S&P 500, Check Point provides a similar Profitable growth across cycles.
**FAQs**
Q: Why did Goldman Sachs upgrade Yunyao Company’s net shares?
A: Goldman Sachs upgraded Yunyao Company’s net shares due to the company’s performance in 2024, stating that the market views each company as a platform rather than a single product.
Q: What are the two catalysts for Cloudflare’s stock in 2025?
A: The two catalysts are improved sales and marketing productivity cycles and the company’s move away from its core edge network architecture to leverage advantages applied to developer services and Act III products.
Q: What is the new price target for Checkpoint Software Technology?
A: The new price target for Checkpoint Software Technology is $207 from $204.
Q: Why will there be pressure on EPS growth in 2025 for Checkpoint Software Technology?
A: Borges believes that there will be pressure on EPS growth in 2025 due to the company’s incremental investment in 2025, which will be evaluated by the new CEO and the launch of new SASE products.
**Conclusion**
The upgrade of Yunyao Company’s net shares by Goldman Sachs highlights the company’s potential for growth in 2025. The two catalysts identified by Borges, including improved sales and marketing productivity cycles and the company’s move away from its core edge network architecture, are likely to drive revenue growth and earnings expansion. Similarly, the upgrade of Checkpoint Software Technology’s price target to $207 reflects the company’s potential for growth and profitability in 2025.
