Why Confluent Stock Surged 12% Higher This Week
Data streaming company Confluent (NASDAQ: CFLT) had quite a good week on the stock exchange, racking up a double-digit increase in its share price. The Monday-Friday stretch saw the specialty tech stock rise by over 12%, according to data compiled by S&P Global Market Intelligence, thanks in no small part to an analyst's recommendation upgrade.
On Tuesday, Barclays prognosticator Raimo Lenschow jumped into the Confluent bullpen. He changed his recommendation on the stock to overweight, or buy, from his preceding equalweight (hold). The analyst's price target is $24 per share, suggesting a potential upside of nearly 20%.
While Lenschow expressed concern about what he considers high estimates for American software stocks, he has hope that the environment for these companies will change for the better in the second half of the year. The macroeconomic headwinds -- such as the still-worrying inflation indicators -- currently buffeting the sector will hopefully subside by then.
Source Fool.com
