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On Thursday, Raymond (NSE:RYMD) James initiated coverage on Confluent Inc (NASDAQ:CFLT), assigning the company's stock an Outperform rating along with a $30 price target. This initiation comes as the firm recognizes potential emerging catalysts that may drive sustainable growth for Confluent. According to InvestingPro data, 17 analysts have recently revised their earnings expectations upward, with the company maintaining a strong financial position with liquid assets exceeding short-term obligations.
Confluent, known for its real-time data streaming platform, is positioned to benefit from the evolution of artificial intelligence (AI) towards more autonomous, agent-based technologies. Raymond James sees Confluent's technology as increasingly vital as the demand for immediate data flow and interactions between AI agents and users grows. The company has demonstrated solid revenue growth of 24% over the last twelve months, reaching $964 million. InvestingPro subscribers can access detailed analysis and 8 additional key insights about Confluent's growth trajectory.
The firm's analyst highlighted Confluent's successful track record with leading AI organizations. This experience, according to Raymond James, sets Confluent up to capitalize on the broader adoption of AI and agent-based computing. The analyst believes that as AI moves into an 'agentic' phase, requiring real-time information processing, Confluent's platform will become even more essential.
Confluent's journey from a streaming platform to a data streaming platform (DSP) and now towards enabling AI and agent-based applications was also noted. Raymond James used analogies to depict Confluent's evolution and its role in supporting real-time analysis, computations, and outcomes.
The $30 price target set by Raymond James reflects confidence in Confluent's market positioning and its potential for growth as AI technology continues to advance. The Outperform rating suggests that the firm believes Confluent shares will perform better than the average return of the stocks that Raymond James covers. Recent market activity supports this optimism, with the stock showing a significant 7.8% return over the last week, though trading at $21.23 currently. With analyst targets ranging from $28 to $42, comprehensive valuation analysis is available through InvestingPro's detailed research reports.
In other recent news, Confluent Inc has been under the spotlight following several analyst evaluations and corporate developments. DA Davidson reaffirmed its Buy rating with a $42 target, citing Confluent's strong position in the data streaming market and its promising 2025 guidance, forecasting significant growth in cloud revenues. Meanwhile, JMP analysts maintained a Market Outperform rating with a $40 target, noting amendments to Confluent's Executive Officer Severance Plan, which they suggest could indicate potential acquisition interest based on historical trends. Truist Securities also reiterated a Buy rating and a $40 target, expressing optimism about Confluent's strategic roadmap and growth potential in the Data Streaming Platform market.
Conversely, Loop Capital Markets adjusted its outlook, lowering the price target to $30 while maintaining a Hold rating, following Confluent's Investor Day. They acknowledged the company's strategic positioning in the AI era but noted broader market challenges impacting their decision. In other developments, Confluent announced the resignation of Erica Schultz, the President of Field Operations, who was instrumental in transitioning to a consumption-based sales model. Additionally, CFO Rohan Sivaram presented a long-term financial model targeting over 25% non-GAAP operating margin and free cash flow margin. These recent developments have kept investors and analysts closely monitoring Confluent's strategic moves and market performance.
In related news, Raymond James initiated coverage on JFrog with an Outperform rating and a $40 target, emphasizing the company's growth potential in the DevSecOps market. They highlighted JFrog's unique position to address toolset sprawl challenges and its potential to expand significantly in the market. Raymond James expressed confidence in JFrog's ability to capitalize on emerging growth catalysts, particularly in security, AI, and enterprise sectors.
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