Confluent price target lowered to $32 from $40 at Stifel

Stifel lowered the firm’s price target on Confluent to $32 from $40 and keeps a Buy rating on the shares. Confluent beat Q2 estimates on the top and bottom lines, but management left the FY24 subscription guidance unchanged despite a $7M beat in Q2, which the firm believes “reflects a healthy degree of conservatism.” While NRR growth is likely to moderate in the second half given the Q2 exit rate, the firm continues to believe Confluent is well positioned to sustain 20%-plus revenue growth and increasing profitability over coming years, the analyst tells investors.