Confluent price target lowered to $24 from $42 at DA Davidson

DA Davidson analyst Rudy Kessinger lowered the firm’s price target on Confluent to $24 from $42 but keeps a Buy rating on the shares. The analyst cites the company’s Q3 Confluent Cloud revenue growth missing guidance and its outlook for Q4 Confluent Cloud sequential growth guidance coming in much lower than expected. Two large customers with company- specific events resulting in lower consumption accounted for half the shortfall while worsening macro pressures resulting in slower new use case additions accounted for the other half, the firm tells investors in a research note.