Gregg Moskowitz, an analyst from Mizuho Securities, reiterated the Buy rating on Confluent (CFLT – Research Report). The associated price target remains the same with $36.00.
Gregg Moskowitz has given his Buy rating due to a combination of factors including Confluent’s impressive first-quarter performance and the substantial growth of its cloud business. Confluent’s total revenue growth of 25% surpassed the anticipated Street forecast, indicating the company’s strong execution in a competitive market. Moreover, the Confluent Cloud revenue surge of 45% year-over-year is a testament to the increasing demand for Confluent’s offerings and the successful shift towards a cloud-centric business model.
Further boosting Moskowitz’s confidence is Confluent’s strategic transition to a full consumption model for its cloud services, which is progressing smoothly and is expected to enhance the company’s long-term revenue growth. In the broader context of data streaming, Confluent is poised to benefit from the trend towards managed data stream processing solutions, and its valuation appears attractive given the expected continued growth. The upward adjustment of the management’s 2024 revenue outlook coupled with ongoing improvements with digital-native customers are also key factors underpinning the Buy recommendation.
In another report released on May 8, Piper Sandler also maintained a Buy rating on the stock with a $37.00 price target.
Based on the recent corporate insider activity of 107 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CFLT in relation to earlier this year.
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Confluent (CFLT) Company Description:
Confluent Inc is a new category of data infrastructure designed to connect all the applications, systems, and data layers of a company around a real-time central nervous system. The company generates revenue from the sale of subscriptions and services.
Read More on CFLT:
- Confluent price target raised to $40 from $37 at RBC Capital
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- Confluent price target raised to $37 from $34 at TD Cowen
- Confluent price target raised to $34 from $33 at Barclays
- Confluent price target raised to $37 from $35 at Guggenheim
