UBS Raises Confluent (CFLT) Price Target, Keeps Buy

Confluent, Inc. (NASDAQ:CFLT) is one of the 10 Best Tech Stocks Under $50 To Invest In. On July 11, UBS increased its price target for Confluent, Inc. (NASDAQ:CFLT) from $30 to $32 while keeping a “Buy” rating.

This decision came after UBS analysts spoke with over 10 industry sources ahead of the company’s earnings report for its second quarter of 2025, which is scheduled for release on July 30.

UBS analysts pointed out that demand for Confluent, Inc.’s (NASDAQ:CFLT) core streaming services appears stable. However, so far, the impact of artificial intelligence integration has shown only a modest contribution to growth.

The firm noted the medium-term growth potential from Confluent, Inc.’s (NASDAQ:CFLT) Flink, Tableflow, and WarpStream offerings. UBS analysts believe these products could add growth of over 5 percentage points once fully implemented, likely in 2027 and beyond.

UBS analysts believe that Confluent, Inc.’s (NASDAQ:CFLT) current valuation is fair at about 7 times its estimated 2026 revenue. The firm also expects the company to achieve free cash flow margins in the mid-teens by 2027.

Confluent, Inc. (NASDAQ:CFLT) is an American technology company that is known for its data streaming platform for organizations to manage and process real-time data streams.

While we acknowledge the potential of CFLT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.