William Blair analyst Jason Ader has maintained their bullish stance on CFLT stock, giving a Buy rating on March 12.
Jason Ader has given his Buy rating due to a combination of factors that highlight Confluent’s potential for growth and expansion. One key reason is the company’s multiple strategies to achieve its 2025 subscription revenue growth targets, which include new pricing options that broaden its addressable market. This approach allows Confluent to cater to a wider range of data streaming use cases.
Additionally, the company has a significant opportunity to convert open-source Kafka users, as it currently has only a 5% penetration rate among Kafka customers. Management is optimistic about accelerating these conversions by focusing on high-propensity accounts. Furthermore, the anticipated growth in DSP sales and the steady growth of the term-based Confluent Platform, which is tied to predictable large customer renewals, contribute to the positive outlook. The company’s strategic partnerships with hyperscalers and other partners also play a crucial role in its growth strategy.
According to TipRanks, Ader is a 3-star analyst with an average return of 3.5% and a 48.09% success rate. Ader covers the Technology sector, focusing on stocks such as AvePoint, Confluent, and N-able.
In another report released on March 12, JMP Securities also maintained a Buy rating on the stock with a $40.00 price target.
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