
Confluent (CFLT) Stock Forecast & Price Target
Confluent (CFLT) Analyst Ratings
Bulls say
Confluent Inc. has demonstrated a significant improvement in profitability, projecting over 41 percentage points of EBIT margin enhancement and aiming for breakeven by the fourth quarter of 2023. The company's strong growth drivers are underscored by a notable increase in net revenue retention (NRR) alongside 35 points for Cloud customers utilizing multiple data streaming platform (DSP) features, resulting in an 18-fold increase in average lifetime Cloud spend. Additionally, the late-stage pipeline has expanded by over 40% quarter-over-quarter for two consecutive quarters, reflecting enhanced sales strategies and improved alignment, which could position Confluent for sustainable revenue growth moving forward.
Bears say
Confluent Inc. is facing a potentially negative outlook due to disappointing quarterly results and guidance that could lead to a contraction in its valuation multiple, indicating weak investor sentiment. Deterioration in crucial metrics such as committed recurring revenue (cRPO) growth and dollar-based net retention rates could further undermine investor confidence while exposing the company to competitive challenges from established players and emerging firms in the data streaming market. Additionally, Confluent's reliance on continuous customer usage growth, combined with significant indebtedness, poses a risk to its liquidity and overall financial condition, which could adversely impact its future prospects.
This aggregate rating is based on analysts' research of Confluent and is not a guaranteed prediction by Public.com or investment advice.
Confluent (CFLT) Analyst Forecast & Price Prediction
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