Share prices of Confluent (NASDAQ: CFLT) are up significantly so far in 2023 with gains of 49%. That comes despite a sell-off last week on news of a downgrade report by a Wall Street analyst.
Confluent's stock price fell by nearly 7% on June 14 after investment and financial services firm Guggenheim Partners downgraded the stock to neutral from buy. The firm also withdrew its one-year price target of $29 on the stock and didn't issue a new one. Confluent is still trading above Guggenheim's earlier price target, but the firm's decision not to issue a new one didn't sit well with investors.
The pullback isn't surprising considering that the multi-cloud data platform company's stock still trades at an expensive 15 times sales, and it could have done with a positive rating from a Wall Street firm.
Source Fool.com