27 Analysts Assess Confluent: What You Need To Know

Providing a diverse range of perspectives from bullish to bearish, 27 analysts have published ratings on Confluent CFLT in the last three months.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $35.63, with a high estimate of $42.00 and a low estimate of $22.00. Witnessing a positive shift, the current average has risen by 3.16% from the previous average price target of $34.54.

Deciphering Analyst Ratings: An In-Depth Analysis

The standing of Confluent among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|------------------------|---------------|-----------------|--------------------|--------------------| |Howard Ma |Guggenheim |Maintains |Buy | $38.00|$38.00 | |Yun Kim |Loop Capital |Lowers |Hold | $22.00|$30.00 | |Michael Turrin |Wells Fargo |Lowers |Overweight | $32.00|$42.00 | |Raimo Lenschow |Barclays |Lowers |Overweight | $29.00|$37.00 | |Sanjit Singh |Morgan Stanley |Lowers |Equal-Weight | $25.00|$32.00 | |Mark Cash |Raymond James |Announces |Outperform | $30.00|- | |Miller Jump |Truist Securities |Lowers |Buy | $35.00|$40.00 | |Patrick Walravens |Citizens Capital Markets|Maintains |Market Outperform| $40.00|$40.00 | |Yun Kim |Loop Capital |Lowers |Hold | $30.00|$34.00 | |Patrick Walravens |Citizens Capital Markets|Maintains |Market Outperform| $40.00|$40.00 | |Mike Cikos |Needham |Maintains |Buy | $40.00|$40.00 | |Austin Dietz |UBS |Raises |Buy | $38.00|$34.00 | |Sanjit Singh |Morgan Stanley |Raises |Equal-Weight | $32.00|$30.00 | |Miller Jump |Truist Securities |Raises |Buy | $40.00|$35.00 | |Karl Keirstead |UBS |Raises |Neutral | $34.00|$26.00 | |Matthew Swanson |RBC Capital |Raises |Outperform | $41.00|$36.00 | |Nick Altmann |Scotiabank |Raises |Sector Perform | $35.00|$27.00 | |Michael Turrin |Wells Fargo |Raises |Overweight | $42.00|$40.00 | |Howard Ma |Guggenheim |Raises |Buy | $38.00|$35.00 | |Brad Reback |Stifel |Raises |Buy | $40.00|$37.00 | |Rob Owens |Piper Sandler |Raises |Overweight | $40.00|$35.00 | |Chirag Ved |Evercore ISI Group |Raises |Outperform | $40.00|$32.00 | |Kingsley Crane |Canaccord Genuity |Raises |Buy | $38.00|$34.00 | |Mike Cikos |Needham |Raises |Buy | $40.00|$31.00 | |Raimo Lenschow |Barclays |Raises |Overweight | $37.00|$35.00 | |Brad Sills |B of A Securities |Raises |Underperform | $31.00|$26.00 | |Howard Ma |Guggenheim |Raises |Buy | $35.00|$32.00 |

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Confluent. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Confluent compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Confluent's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Confluent's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Confluent analyst ratings.

Discovering Confluent: A Closer Look

Confluent Inc provides a data streaming platform that enables customers to connect their applications, systems, and data layers and can be deployed as a fully managed cloud-native software-as-a-service (SaaS) offering. Its products include Confluent Cloud, a self-managed software offering, Confluent Platform, a managed service offering where the raw data resides inside a customer's cloud environment, and WarpStream, among others. Confluent also offers professional services and education services. The company generates revenue from the sale of subscriptions and services. Geographically, it generates a majority of its revenue from its business in the United States and the rest from International markets.

Key Indicators: Confluent's Financial Health

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Confluent displayed positive results in 3M. As of 31 December, 2024, the company achieved a solid revenue growth rate of approximately 22.53%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Net Margin: Confluent's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -33.71%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Confluent's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -9.29%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Confluent's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -3.32%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Confluent's debt-to-equity ratio surpasses industry norms, standing at 1.15. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

The Significance of Analyst Ratings Explained

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.