Citi keeps a Neutral rating on Confluent (CFLT) with a $25 price target and opens a “positive catalyst watch” ahead of upcoming conferences. Citi sees seasonality and guidance patterns favoring a Q2 bounce-back, the analyst tells investors. Consumption software names have lagged the rest of software, notes the analyst, who believes the group can outperform as GenAI consumption increases with a low bar and following positive read-throughs from Microsoft (MSFT) Azure. The firm is constructive on the near-term setup with derisked guidance right after Liberation day and potential catalysts from upcoming products and partnership announcements with Flink and GenAI at Current, but remains cautious long-term due to lingering execution issues and a less strategic category, Citi added.
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