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Confluent price target lowered to $27 from $40 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on Confluent (CFLT) to $27 from $40 and keeps an Overweight rating on the shares. Confluent’s slight Q3 miss on cloud and weaker-than-expected cloud guide reflect multiple factors, including slower usage from two large customers, impact from a sales transformation and a slower pace of software development projects, the analyst tells investors. However, Confluent’s cloud miss, while not solely due to macro or cloud optimization, “makes us incrementally more cautious” heading into Datadog (DDOG) results next week, the analyst added.

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