Bank of America Securities analyst Koji Ikeda reiterated a Sell rating on Confluent (CFLT – Research Report) today and set a price target of $31.00.
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Koji Ikeda has given his Sell rating due to a combination of factors related to Confluent’s financial performance and market position. Despite reporting better-than-expected fourth-quarter results for 2024, Confluent’s growth and profit metrics still trail behind its infrastructure software peers. The company’s revenue growth and operating margin for 2025 do not meet the industry standards, which could limit potential upsides in its stock price.
Furthermore, although Confluent’s partnership with Databricks is promising and could enhance its relevance in AI applications, the financial guidance provided for 2025 suggests that growth is not accelerating at a pace comparable with its competitors. Until Confluent can improve its standing relative to its peers, particularly in terms of revenue growth and profitability, Ikeda maintains a cautious outlook with a Sell rating, despite raising the price objective to $31 based on improved execution.