Derrick Wood, an analyst from TD Cowen, reiterated the Buy rating on Confluent (CFLT – Research Report). The associated price target was raised to $41.00.
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Derrick Wood has given his Buy rating due to a combination of factors contributing to Confluent’s promising outlook. The company posted a strong fourth quarter with subscription revenue growth surpassing expectations, alongside a solid fiscal year 2025 guidance that aligns with market predictions. The integration of DSP cross-selling and the Warpstream acquisition are showing positive momentum, while an enhanced partnership with Databricks positions Confluent favorably in the GenAI market.
Furthermore, Confluent’s win rates have increased significantly, maintaining a competitive edge in deals against cloud service provider offerings and smaller startups. The company’s DSP segment is experiencing faster growth compared to overall cloud revenue, indicating a promising trajectory for future expansion. These elements collectively support a favorable investment case, justifying the Buy rating and the revised price target of $41.
In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $40.00 price target.