UBS Lowers Confluent Price Target to $28, Maintains 'Buy' Rating

UBS analyst Radi Sultan lowered Confluent's (CFLT) price target to $28.00 from $32.00, a 12.50% decrease. The average 12-month price target from 31 analysts is $29.34, indicating a 60.86% upside from the current price of $18.24. The average brokerage recommendation is 2.0, indicating "Outperform" status. GuruFocus estimates a 1-year GF Value of $41.81, a 129.22% upside from the current price.

Confluent Inc. (NASDAQ: CFLT), a data streaming pioneer, has recently faced a series of downgrades and price target adjustments from major brokerages. UBS analyst Radi Sultan lowered Confluent's price target to $28.00 from $32.00, a 12.50% decrease [1]. This adjustment comes amidst growing concerns about the company's cloud growth and execution challenges.

The average 12-month price target from 31 analysts is $29.34, indicating a 60.86% upside from the current price of $18.24. The average brokerage recommendation is 2.0, indicating an "Outperform" status. GuruFocus estimates a 1-year GF Value of $41.81, a 129.22% upside from the current price [2].

The recent earnings report highlighted mixed results. While Confluent exceeded earnings per share expectations with an EPS of $0.09 compared to the anticipated $0.08, the revenue fell short of forecasts, reaching $270.8 million against the expected $278.29 million [3]. The company's stock has reached a 52-week low, touching a price of $17.79 USD, but has experienced a notable 1-year change, increasing by 27.97% [2].

Analysts have cited significant challenges in the cloud sector, including customer usage optimization and a slowdown in new workload activity. Stifel downgraded Confluent from a Buy to a Hold, citing these issues [1]. TD Cowen also echoed this cautious tone, reducing its target to $24.00 from $32.00 after what it called a “mixed” second quarter [1].

Despite these challenges, Confluent maintains strong financial health with a current ratio of 4.42, demonstrating robust liquidity. The company's stock performance reflects broader market trends and investor sentiment, which can shift rapidly due to various economic factors and company-specific developments.

Investors will be closely watching Confluent to see if this recent dip marks a turning point or if further declines are on the horizon. The company's ability to navigate these challenges and maintain its growth trajectory will be key to its future success.

References:
[1] https://www.investing.com/news/stock-market-news/confluent-downgraded-on-cloud-growth-slowdown-execution-concerns-4163986
[2] https://ca.investing.com/news/company-news/confluent-stock-hits-52week-low-at-1779-usd-93CH-4129750
[3] https://www.gurufocus.com/news/3018786/confluent-announces-second-quarter-2025-financial-results