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Investing.com - Piper Sandler raised its price target on Confluent Inc (NASDAQ:CFLT) to $28.00 from $27.00 on Tuesday, while maintaining an Overweight rating on the data streaming platform company. The company, currently valued at $7.63 billion, has shown robust fundamentals with a 74% gross profit margin and strong liquidity metrics.
The price target increase follows Confluent’s third-quarter performance, which Piper Sandler described as a "solid beat" and noted it was the first time this year the company raised its cloud expectations. With revenue growing at 23% year-over-year, InvestingPro data shows the company is trading near its Fair Value, with analysts expecting profitability this year.
According to Piper Sandler, Confluent management attributed the better-than-expected cloud results to accelerating new workload growth, aided by strong late-stage pipeline progression, and a normalization of optimization activity.
The firm highlighted Confluent’s customer metrics, noting the largest net additions of customers with over $100,000 in annual recurring revenue (ARR) in two years.
Piper Sandler expressed a positive outlook for Confluent shares heading into 2026, citing potential benefits from go-to-market improvements, Apache Flink integration, and expanded product offerings, with shares currently trading at approximately six times estimated calendar year 2026 revenue.
In other recent news, Confluent Inc has reported impressive third-quarter earnings, with cloud revenue reaching $161 million, marking a 24% year-over-year increase and surpassing consensus expectations by 200 basis points. Platform revenue also showed strong growth, reaching $125 million, up 14% year-over-year and exceeding estimates by 130 basis points. The company’s robust performance has led several analyst firms to adjust their outlooks. Wolfe Research raised its price target to $32, noting the strong earnings report. Raymond James increased its target to $30, highlighting the results and guidance that surpassed buy-side expectations. RBC Capital also raised its target to $30, pointing to the company’s performance exceeding consensus across all guided metrics. Meanwhile, Mizuho set its new price target at $26, citing better-than-expected subscription revenue driven by Confluent Cloud. Bernstein reiterated an Outperform rating and noted a 43% year-over-year increase in revenue purchase obligations, suggesting potential future acceleration.
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