In a report released today, Sanjit Singh from Morgan Stanley maintained a Hold rating on Confluent, with a price target of $27.00.
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Sanjit Singh has given his Hold rating due to a combination of factors that reflect both positive developments and areas needing improvement for Confluent. The company’s subscription revenue in the third quarter exceeded expectations, growing by 19% year-over-year, although this was a slight deceleration from previous quarters. Additionally, Confluent Cloud’s growth was robust at 24% year-over-year, outperforming consensus estimates, yet it showed a slowdown compared to earlier growth rates.
Despite these positive signs, Singh remains cautious, looking for more consistent execution from Confluent to justify a more optimistic rating. The company has shown promising developments, such as an increase in late-stage pipeline generation and stability in existing customer spending. However, Singh is waiting for further evidence of sustained growth and execution before considering a more favorable rating. Thus, the Hold rating reflects a balanced view of the current strengths and challenges facing Confluent.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $24.00 price target.
Based on the recent corporate insider activity of 94 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CFLT in relation to earlier this year.