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On Wednesday, Canaccord Genuity increased its price target on shares of Confluent Inc (NASDAQ:CFLT) to $38.00, up from the previous $34.00, while maintaining a Buy rating on the stock. The firm’s analysts are optimistic about the company’s prospects, citing its strong position in the data-in-motion market and the successful development of its cloud platform. According to InvestingPro data, the stock has shown strong momentum with a 49% gain over the past six months, while analyst targets now range from $26 to $42.
Confluent, recognized as a leader in the data streaming technology cycle, is seen to be capitalizing on the early stages of this market. Canaccord Genuity’s analysts believe that the company’s cloud platform addresses the scalability challenges faced by many companies that previously relied on open-source solutions. While currently unprofitable, InvestingPro analysis indicates strong fundamentals with a robust gross profit margin of 73% and analysts forecasting profitability in the coming year.
The research firm’s valuation of Confluent stock is based on approximately 9.5 times the enterprise value to revenue (EV/R) on the calendar year 2025 (CY25) after the market. They anticipate a positive risk/reward scenario as Confluent emerges from a go-to-market (GTM) transition that has reportedly exceeded expectations.
Canaccord Genuity’s new price target implies a valuation of around 11 times CY25E sales. The analysts justify this multiple by referring to Confluent as a category-defining company that is well-positioned to resume high-20s percentage growth rates following its consumption transition. The firm reaffirms its confidence in the stock with a Buy recommendation, signaling its belief in the company’s continued growth and market leadership.
In other recent news, Confluent Inc., a data streaming platform, has seen a series of upgrades to its stock price targets following strong Q4 results and positive revenue forecasts. Truist Securities raised the price target to $40 from $35, maintaining a Buy rating, citing a surge in cloud revenue and successful customer adoption of its Data Stream Processing (DSP) capabilities. Stifel analysts also increased the price target to $40, noting a steady net retention rate and a positive earnings report. BofA Securities analyst Brad Sills increased the price target to $31 from $26, while maintaining an Underperform rating, acknowledging Confluent’s robust fourth-quarter performance and disciplined cost management.
Evercore ISI analyst Chirag Ved raised the price target for Confluent to $40, up from $32, maintaining an Outperform rating, highlighting the company’s strong performance and surpassing of Street expectations. Goldman Sachs updated the firm’s stance on Confluent, increasing the price target to $30 from $29, maintaining a Neutral rating, following a 23% year-over-year revenue increase in Confluent’s fourth-quarter earnings. These are some of the recent developments that indicate a positive outlook for Confluent’s growth trajectory.
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