
Confluent (CFLT) Stock Forecast & Price Target
Confluent (CFLT) Analyst Ratings
Bulls say
Confluent Inc has demonstrated significant improvement in profitability, with guidance indicating more than 41 percentage points of EBIT margin enhancement over the past two years and plans to achieve breakeven in the fourth quarter of 2023. The company is poised for growth, as evidenced by its late-stage pipeline expansion of over 40% quarter-over-quarter for two consecutive quarters, alongside notable increases in net revenue retention (NRR) for Cloud customers utilizing multiple data streaming platform features. With a favorable valuation at approximately 0.5x EV/revenue/growth, Confluent is positioned as a category-defining company with sustainable growth potential of 20%, appealing for shareholders.
Bears say
Confluent Inc faces a negative outlook due to several key fundamental challenges impacting its financial health. A decline in critical investor metrics such as customer growth, dollar-based net retention rates, and cRPO growth could lead to reduced investor sentiment and a contraction in valuation multiples. Additionally, the company's reliance on existing customers for sustained growth, coupled with increasing competition from established industry players and significant indebtedness, raises concerns about profitability and liquidity in the future.
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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