
Confluent (CFLT) Stock Forecast & Price Target
Confluent (CFLT) Analyst Ratings
Bulls say
Confluent Inc has demonstrated significant improvement in its profitability, with guidance indicating over 41 percentage points of EBIT margin enhancement over the past two years, positioning the company for breakeven in the fourth quarter of 2023. The company's strong growth drivers include a notable increase in net revenue retention (NRR) by 35 percentage points for cloud customers utilizing three or more Digital Streaming Platform (DSP) features, coupled with an average lifetime cloud spend that is 18 times higher. Additionally, Confluent has seen its late-stage pipeline grow over 40% quarter-over-quarter for two consecutive quarters, reflecting effective enhancements in sales coverage ratios and the establishment of a dedicated DSP Specialist Team under new leadership.
Bears say
Confluent Inc faces a challenging outlook due to a potential contraction in valuation multiples stemming from quarterly results or guidance that fall below expectations. Key investor metrics, including cRPO growth, large Customer Growth, and Dollar-Based Net Retention Rates, are deteriorating, which could further dampen investor sentiment and affect stock valuation. Additionally, competitive pressures from notable industry players and the potential impact of significant indebtedness may adversely affect the company’s liquidity and overall financial condition.
This aggregate rating is based on analysts' research of Confluent and is not a guaranteed prediction by Public.com or investment advice.
Confluent (CFLT) Analyst Forecast & Price Prediction
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