On Nov 01, major Wall Street analysts update their ratings for $Confluent (CFLT.US)$, with price targets ranging from $25 to $40.
Morgan Stanley analyst Sanjit Singh maintains with a buy rating, and adjusts the target price from $32 to $33.
Goldman Sachs analyst Kash Rangan maintains with a hold rating, and adjusts the target price from $28 to $29.
Barclays analyst Raimo Lenschow maintains with a buy rating, and adjusts the target price from $29 to $32.
UBS analyst Karl Keirstead maintains with a hold rating, and adjusts the target price from $30 to $26.
Wells Fargo analyst Michael Turrin maintains with a buy rating, and adjusts the target price from $34 to $35.
Furthermore, according to the comprehensive report, the opinions of $Confluent (CFLT.US)$'s main analysts recently are as follows:
The firm is optimistic about Confluent's post-Q3 earnings performance. Positive indicators include a deceleration in Net Expansion Rate (NER), robust growth in cloud services fueled by a stabilization in digital native consumption expenditure, as well as an increasing trend of adopting multiple products. Additionally, the company has maintained steady operational execution despite potential disturbances arising from modifications to their internal sales incentives.
The firm remains 'comfortable' on the sidelines despite the sequential Cloud revenue outperformance and a reaffirmation of its implied final quarter subscription revenue guidance. Confluent has once more emphasized its large digital native customer base, and it is believed that the significant leverage to this sub-segment contributes to the risk profile.
Following the Q3 report, the company's Cloud results exceeded expectations and demonstrated acceleration, a factor deemed crucial for investors. It is anticipated that the upcoming quarters will see significant contributions from Flink, suggesting further potential in the company's trajectory.
Confluent's third quarter performance was notably better than anticipated, with Subscription revenue experiencing a 25% increase year over year, surpassing the expected 23.5%. Furthermore, Cloud revenue saw a reacceleration with a 42% year over year growth, outperforming the forecasted 37%. The anticipation is that data streaming adoption will continue to rise significantly in the medium to long term, positioning Confluent as a likely beneficiary in the managed data stream processing solutions sector.
The company announced a robust quarter with standout growth in subscription and cloud segments, both increasing by 27% and 42%, respectively. This performance surpassed both the consensus and the upper range of their guidance. Despite a sizable one-time cloud deal in Q3, the firm observed a stabilization in consumption among digitally-native customers and saw large cloud customers adopting new use cases.
Here are the latest investment ratings and price targets for $Confluent (CFLT.US)$ from 21 analysts:
Note:
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