Stifel raises Confluent stock price target to $40, maintains Buy rating

On Wednesday, Stifel analysts adjusted their outlook on Confluent Inc (NASDAQ:CFLT), increasing the price target to $40 from the previous $37 while retaining a Buy rating on the stock. The company, currently valued at $9.87 billion, has seen its shares surge nearly 50% over the past six months. The firm’s analysts pointed to several positive indicators for the company’s future performance, including a subscription revenue guide for the first quarter and full year of 2025 that slightly exceeds market expectations.

The analysts highlighted that if last quarter’s one-time unused credit revenue were excluded, Confluent’s sequential dollars would have likely remained approximately stable. They believe that Confluent is well-positioned to maintain a revenue growth rate of over 20% and see an uptick in profitability in the coming years. According to InvestingPro data, the company has already demonstrated strong performance with a 25% revenue growth and impressive 73% gross profit margin in the last twelve months. This optimistic outlook is supported by a mix of factors such as the potential for converting open-source Kafka users, opportunities in data modernization, increasing sales productivity, and a significant customer base poised for expansion.

Stifel’s analysis also anticipates that Confluent’s upcoming March analyst day will be an important event for the company. It is expected that the focus will be on the growing serviceable addressable market (SAM) and an updated financial model, which could provide further insight into the company’s strategic direction and growth potential.

Investors are keeping an eye on Confluent as it navigates the competitive landscape of data streaming platforms. With the company’s guidance showing promise and Stifel’s positive assessment, Confluent’s stock performance will be closely watched in the coming months.

In other recent news, Confluent Inc. has seen a series of upgrades by various analyst firms following strong earnings and revenue results. Guggenheim Securities raised their stock target to $38, emphasizing the company’s cloud revenue growth of 38% year-over-year. Similarly, Scotiabank (TSX:BNS) increased their target to $35, noting a 38% rise in Cloud revenues and a stable Net Revenue Retention rate of 117%.

Mizuho (NYSE:MFG) Securities also boosted their price target to $38, highlighting Confluent’s Subscription revenue growth of 23.6% year-over-year. Concurrently, Canaccord Genuity increased their target to $38, citing the company’s strong position in the data-in-motion market. Finally, Truist Securities adjusted their outlook on Confluent, increasing the price target to $40, particularly noting a surge in cloud revenue.

All firms noted the recent expansion of Confluent’s partnership with Databricks and the company’s positive trajectory. These developments indicate a promising outlook for Confluent in the data streaming market.

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