Confluent (CFLT – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Sanjit Singh from Morgan Stanley maintained a Hold rating on the stock and has a $32.00 price target.
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Sanjit Singh has given his Hold rating due to a combination of factors related to Confluent’s recent financial performance and future outlook. While Confluent reported better-than-expected results for the fourth quarter, the growth was the smallest margin of the year. The company showed a slight deceleration in subscription revenue growth and faced challenges in its cloud business, which added the same revenue quarter-over-quarter as the previous year.
Despite the positive performance, Singh notes that the outlook for 2025 remains in line with expectations, with guidance suggesting sustained but not accelerated growth. The Hold rating reflects a cautious approach as the company navigates modest growth trends and waits for the new product cycle to gain momentum. The decision to maintain the Hold rating indicates a belief in the potential of streaming, but acknowledges the need for evidence of a more favorable spending environment and contributions from new product offerings.