Confluent downgraded to Hold yesterday at Canaccord

As previously reported, Canaccord downgraded Confluent to Hold from Buy with a price target of $26, down from $40, following “a soft FY24 outlook” from the company and commentary around both lower upfront commitments and product consumption. Valuation was baking in about 30% growth for three to four years before the print, but with growth “knocked down a peg into the low 20’s and pressure on both sides of the model,” the firm contends that the confluence of factors “suggests things will get worse before they get better.”