Confluent's Revised Revenue Projections And Gross Margin Outlook Prompt Analyst Downgrade
Portfolio Pulse from Lekha Gupta
Guggenheim Securities analyst Howard Ma downgraded Confluent Inc (NASDAQ:CFLT) to Neutral from Buy and removed its price target post-investor day. The analyst is bearish on the management's lowered mid-term revenue growth target and believes the near-term upside from Flink and AI use cases are likely already priced into shares.
June 15, 2023 | 6:44 pm
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NEGATIVE IMPACT
Confluent Inc downgraded to Neutral from Buy by Guggenheim Securities analyst due to lowered mid-term revenue growth target.
The downgrade by Guggenheim Securities analyst Howard Ma is based on the lowered mid-term revenue growth target, despite new revenue opportunities. This indicates that the analyst believes the near-term upside from Flink and AI use cases are likely already priced into shares, which could lead to a negative short-term impact on the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100