Confluent initiated with a Hold at Loop Capital

Loop Capital initiated coverage of Confluent with a Hold rating and $23 price target. Confluent is one of the best positioned vendors in the industry with its growth driven by the top secular trends around the migration of workloads to the cloud and increasing usage of generative artificial intelligence technology that require real-time data streaming platform, the analyst tells investors in a research note. However, the firm believes it is too early in the adoption curve of this emerging technology, which is reflected in the company’s “lackluster results” in its Cloud business last year.