Confluent downgraded to Underperform at BofA on ‘disappointing’ outlook

As previously reported, BofA downgraded Confluent to Underperform from Neutral with a price target of $24, down from $38, after Confluent reported “disappointing” RPO and gave a disappointing fiscal Q4 outlook. Commentary suggests that the accelerated transition to a consumption go-to-market model is likely to be completed by the end of the first half of FY24, but the firm expects this to weigh on growth for “at least a full year,” the analyst tells investors.