Analyst Michael Turrin from Wells Fargo maintained a Buy rating on Snowflake and increased the price target to $250.00 from $225.00.
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Michael Turrin has given his Buy rating due to a combination of factors including Snowflake’s anticipated acceleration in product revenue growth and positive customer sentiment. The company is expected to see a re-acceleration in the second quarter, with product revenues projected to grow significantly, supported by the strength of new products like Snowpark and Cortex. Additionally, easing comparisons in the latter half of the year make the full-year guidance of 25% year-over-year growth seem achievable.
Furthermore, insights from a customer survey indicate an increase in growth expectations, with a substantial portion of customers planning to increase their consumption. Although there are mixed signals from cloud revenue results, the overall demand for cloud and AI services remains strong. Snowflake’s progress in AI, particularly with its partnership with OpenAI, and its valuation metrics, which are considered fair given the improving fundamentals, also contribute to the positive outlook.
Turrin covers the Technology sector, focusing on stocks such as SAP SE, Microsoft, and Snowflake. According to TipRanks, Turrin has an average return of 0.2% and a 47.25% success rate on recommended stocks.
In another report released yesterday, Evercore ISI also maintained a Buy rating on the stock with a $240.00 price target.