Confluent downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded Confluent (CFLT) to Equal Weight from Overweight with a price target of $30, down from $33. While the company’s data streaming platform opportunity can drive attractive rates of growth longer term, with 2025 consensus revenue estimates implying growth in net-new dollars added and checks that suggest Flink adoption is still early, the stock’s risk/reward is less attractive, the analyst tells investors in a research note. The firm says Confluent’s newer products such as Flink are in the early stages based on its customer and partner conversations. This creates a more difficult setup for the initial 2025 outlook, it contends.