Analyst Peter Weed of Bernstein maintained a Buy rating on Confluent (CFLT – Research Report), with a price target of $35.00.
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Peter Weed has given his Buy rating due to a combination of factors that highlight Confluent’s strong financial performance and strategic initiatives. The company reported impressive Q4’24 earnings, surpassing subscription and cloud revenue expectations, which sets a positive outlook for 2025. Confluent achieved a significant milestone by closing 2024 as their first non-GAAP profitable year, and management continues to focus on margin expansion and reducing dilution.
Additionally, Confluent’s collaboration with Databricks and its strategic moves against competitors like Redpanda showcase its competitive edge and potential for growth. The company’s expanding product portfolio and successful transition to a consumption-based sales model are expected to drive revenue growth, especially in the latter half of the year. Given these factors, along with an optimistic outlook on IT budgets and AI projects, Peter Weed maintains a positive stance on Confluent’s future performance.
According to TipRanks, Weed is a 5-star analyst with an average return of 21.7% and an 82.35% success rate. Weed covers the Technology sector, focusing on stocks such as Okta, Zscaler, and Datadog.
In another report released today, JMP Securities also maintained a Buy rating on the stock with a $40.00 price target.