Cloud-based software company Snowflake Inc. (SNOW) has been expanding at an impressive rate. The company released strong Q1 earnings on May 26 beating analysts’ expectations for both revenue and gross profit. (See SNOW stock analysis on TipRanks)
Publishing an opinion on the matter is Gray Powell of BTIG, who is optimistic about Snowflake’s returns. Powell rated the stock a Hold and did not provide a price target.
Powell is encouraged by Snowflake’s recently signed and ongoing major deals, especially with customers spending over $1 million per year. He wrote that the company is seeing big wins against its competition in the public cloud market, despite not having yet replaced “legacy on-premise data warehouse solutions.”
The analyst was impressed by Snowflake’s aggressive investments in sales and marketing, and after going through its earnings report, has a heightened level of confidence in the company’s future outlook. However, due to its high trading price, Powell decided on a Hold rating until the price falls to more attractive levels.
Furthermore, Powell mentioned that Snowflake is poised to benefit from the exponential rise of businesses making digital transformations, driving “greater demand for data warehouse and business analytics technologies.” He added that the company’s success at this point is unmatched in the world of software, and took the stance that the company will continue to grow rapidly for years.
On TipRanks, Snowflake has an average analyst price target of $275.63, reflecting 12-month upside potential of 15.80% from Friday’s closing price. The stock is designated as a Moderate Buy based on 11 Buy and 12 Hold ratings.
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
