GTLB - GitLab Confluent stocks rise as Mizuho starts coverage on companies

2023-03-29 08:44:03 ET

GitLab ( NASDAQ: GTLB ) and Confluent ( NASDAQ: CFLT ) rose in premarket trading on Wednesday as investment firm Mizuho initiated coverage on the companies.

GitLab: Analyst Gregg Moskowitz started coverage on the DevOps company with a neutral rating and per-share price target of $38, noting the company's "robust" single architecture is well suited to help companies with their DevOps needs.

However, the global economy looks as if it is having an "outsize effect" on GitLab ( GTLB ) and though there is little risk to fiscal 2024, execution could be choppy over the next 12 months and any upside is likely to be limited.

Confluent: Moskowitz started coverage on the streaming company with a buy rating and per-share price target of $28, noting data streaming is likely to be "much higher" over the medium and longer-terms, with the company's platform seen as best-in-class.

"We also see CFLT as a key beneficiary of a trend towards managed data streaming solutions," Moskowitz wrote in an investor note.

The analyst also noted that Confluent's ( CFLT ) platform allows its customers to more easily connect to various data sources, including Apache Kafka, which lets them create "more modernized, event-driven applications."

Earlier this month, investment firm Wells Fargo said Confluent ( CFLT ) may see some impact from the Silicon Valley Bank fallout, but investor focus has been largely focused on cloud growth and expansion rates .

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