William Power, an analyst from Robert W. Baird, maintained the Hold rating on Confluent (CFLT – Research Report). The associated price target remains the same with $37.00.
William Power’s rating is based on a combination of factors that reflect both optimism and caution regarding Confluent’s future prospects. He acknowledges the company’s leadership in the data streaming space and its potential to capitalize on the growing demand for real-time data platforms, particularly in enabling Agentic AI. However, he notes that the industry is still in the early stages of preparing data for these advanced applications, suggesting that the full benefits may not be realized immediately.
Additionally, while Confluent’s expanded partnership with Databricks and its focus on new customer acquisition present promising growth opportunities, there are still challenges to overcome. The company has a significant runway for increasing its customer base, given the large number of organizations using open-source Kafka compared to its current customer count. Despite these opportunities, the stock’s higher risk profile and the need for further DSP adoption to drive higher spending contribute to the Hold rating, as Power remains cautiously optimistic about Confluent’s long-term profitability and market position.
In another report released yesterday, Morgan Stanley also maintained a Hold rating on the stock with a $32.00 price target.