Confluent price target lowered to $26 from $32 at Oppenheimer

Oppenheimer analyst Ittai Kidron lowered the firm’s price target on Confluent (CFLT) to $26 from $32 and keeps an Outperform rating on the shares. The firm notes Confluent reported mixed Q2 results, including Cloud consumption headwinds and large customer optimizations, which are weighing on DBNRR and gross retention. Adding to the headwinds, Confluent is realigning its sales motion and doubling down on CSP takeouts, partner enablement, and AI. While the GTM realignment is positive, it may take several quarters for the results to be reflected. Management’s decision not to lower second half of 2025 expectations adds to risks near term, Oppenheimer adds. Given mixed data points and poor execution, the firm expects the shares to reset lower and be range-bound until consistent results emerge.