Confluent inventory positive aspects 17% on spectacular earnings amid power in cloud, gross sales execution

Confluent (NASDAQ:CFLT) inventory gained 17.3% on Thursday as the information streaming agency reported sturdy Q3 outcomes and issued FY22 outlook topping Avenue expectations, helped by continued power in cloud and sustained gross sales execution.

Financial institution of America minimize its value goal to $30 from $36 (33.9% potential upside to final shut) on a number of compression throughout the group and reiterated its Impartial ranking pending higher visibility for breakeven margin.

“Q3 outcomes level to sustained execution and momentum in massive accounts from departmental enlargement of real-time streaming apps operating on Confluent/Kafka. Nonetheless, nonetheless lagging profitability is more likely to weigh on sentiment close to time period,” analyst Brad Sills wrote in a word to shoppers.

In the meantime, Cowen reiterated its $39 PT (potential upside of 74%) and Outperform ranking. “General, demand for modernizing IT stacks with knowledge streaming infrastructure stays excessive, cloud adoption is inflecting and gross sales execution is operating at excessive ranges,” stated analyst Derrick Wooden, including that FY23 steering is a “conservative begin with ample upside levers”.

Different PT adjustments embody Credit score Suisse (minimize to $55 from $65; 145.5% potential upside), Barclays (minimize to $27 from $30; 20.5% potential upside) and D.A. Davidson (minimize to $33 from $44; 47.3% potential upside).

Wall Avenue analysts on common are bullish on Confluent (CFLT), in step with SA Quant’s Purchase ranking.

Shares of Confluent (CFLT) dropped ~64% YTD.