Confluent initiated with a Neutral at Baird

Baird analyst William Power initiated coverage of Confluent with a Neutral rating and $23 price target. The firm is positive on growing data in motion as well as expanding total addressable market and the company’s position, though that’s tempered somewhat in the near-term by the recent visibility questions, go-to-market changes and new product uncertainty, the analyst tells investors in a research note. Baird further notes the company’s generative AI potential, stating that real-time data could become more important for emerging generative AI applications, but also sees the stock’s valuation at 6.5-times its 2025 revenue forecast in line with the firm’s broader SaaS average.