Confluent Stock Has 26% Upside, According to 1 Wall Street Analyst
Analysts at Mizuho have become a bit less optimistic about Confluent (NASDAQ: CFLT). On Monday, they lowered their price target on the data streaming company's shares from $38 to $36. However, that new target still represents a potential upside of 26% from the current price, and Mizuho maintained its buy rating on the stock.
Confluent specializes in helping enterprises handle complex data streaming workloads using Apache Kafka, a popular open-source platform. While any company can install and run a Kafka installation, running the complex piece of software is not for the faint of heart.
Mizuho sees strong demand for Confluent's managed cloud Kafka platform, particularly related to cybersecurity and artificial intelligence. It also believes that the large cost optimizations that enterprise clients have been making are now complete, which should take some pressure off Confluent's top line. Its revenue growth has been slowing in recent quarters, and management said it was expecting just 21% growth in the first quarter of 2024.
Source Fool.com
