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Investing.com - TD Cowen has raised its price target on Confluent Inc (NASDAQ:CFLT) to $27.00 from $24.00 while maintaining a Hold rating following the company’s third-quarter results. According to InvestingPro data, analyst targets for the stock range from $20 to $36, with the company showing strong return over the last month.
The cloud data streaming platform posted what TD Cowen described as a "solid bounce back quarter," with subscription revenue exceeding expectations by approximately 1.5%. The company’s net revenue retention rate remained stable at 114%. The company maintains impressive revenue growth of 23% year-over-year, with a robust gross profit margin of 74.2%.
Confluent raised its fiscal year 2025 revenue growth guidance from approximately 20% to 21%, with the firm citing improved consumption trends, momentum in its Flink product, and better go-to-market execution as key drivers of the quarter’s performance.
Despite the positive results, TD Cowen maintained its Hold rating, noting it seeks "more evidence of consistency" in upcoming quarters. The analyst pointed out that Confluent has experienced fluctuations in quarterly execution over the past couple of years.
The new $27 price target represents approximately 6 times enterprise value to estimated calendar year 2026 sales, with TD Cowen suggesting that demand stabilization and potential acquisition interest "should create a stronger floor for the stock."
In other recent news, Confluent Inc has reported strong third-quarter results, leading to several analyst firms raising their price targets for the company. RBC Capital increased its price target to $30, citing that Confluent’s performance exceeded consensus expectations across all guided metrics, particularly in cloud growth. Raymond James also raised its target to $30, highlighting the company’s results and guidance as a positive step towards regaining investor confidence. Piper Sandler increased its price target to $28, noting improved execution and the first raise in cloud expectations this year. DA Davidson set a new target of $29, attributing the increase to a "solid beat and raise" quarter, with optimizations returning to healthy levels. Bernstein maintained its $31 target, emphasizing growth confidence from Flink acceleration and a significant increase in late-stage cloud pipeline projects. These developments reflect a positive outlook from analysts on Confluent’s recent performance and future potential.
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