Confluent, Inc. (CFLT) was initiated with an Outperform rating and $34 per share price target by Bernstein analysts in a note Tuesday.
Analysts told investors in a note that CFLT is an "attractive revenue story" with tailwinds from cloud adoption, with a "durable competitive position relative to hyperscalers and new entrants."
The analysts note that Confluent is so important for cloud due to "the leading offering for self-hosted and managed Kafka, the dominant open-source standard for real-time message bus (key architecture component for hybrid and native clouds)."
"It is the leading offering for self-hosted and managed Kafka, the dominant open-source standard for real-time message bus (key architecture component for hybrid and native clouds)," they wrote.
Furthermore, Bernstein believes "several revenue-side controversies" create an upside to consensus, while cash flow "controversy" adds to the upside.