Confluent downgraded to Neutral on growth concerns at UBS

UBS analyst Karl Keirstead downgraded Confluent to Neutral from Buy with a price target of $24, down from $27. The analyst cites growth concerns for the downgrade following the company’s 8% workforce reduction, preannounced Q4 results and guidance which it says show weak revenue performance obligation growth, and the departure of its Chief Revenue Officer. UBS no longer has full confidence in Street estimates and Confluent’s revenue growth outlook.