瑞银因强劲的客户前景而升级Confluent

Confluent (NASDAQ:CFLT) was trading higher after UBS upgraded the data streaming platform on a strong customer outlook.

CFLT was 3.75% higher to $31.58 Wednesday noon.

The investment bank said it spoke to nine of CFLT's customer/partner checks.

"1) Our customer checks upticked on '25/'26 spending growth outlooks, 2) while still early, we heard of Gen AI pull-through to Confluent from customers/partners, 3) Confluent's competitive landscape with the hyperscalers appears stable to modestly improving, and 4) we view Confluent's push from real-time operational into higher-growth analytics as a long-term positive," said analyst Austin Dietz in a research note.

UBS raised its recommendation on the stock to Buy from Neutral, and increased the 12-month price target to $38 from $34.

The rating aligns with the average sell-side analyst rating.

Seeking Alpha's Quant Rating system grades the stock as Strong Buy, with a score of 4.56 on a scale of 5. Quant grades CFLT as A+ for Growth, B- for Momentum, and B+ for Revisions.

Meanwhile, SA authors rate CFLT as Hold.

"Despite reporting strong subscription revenue growth and improved free cash flow, Confluent's valuation appears expensive given decelerating growth and high competition," said SA contributor Stephen Ayers.

Confluent's current market valuation implies unsustainable 20%-plus Y/Y revenue growth, making the stock appear overvalued, according to Ayers.

CFLT has risen 12.34% year-to-date, and is trading about 17% below its 52-week high of $37.90.