Analyst Bradley Sills from Bank of America Securities reiterated a Hold rating on Snowflake (SNOW – Research Report) and increased the price target to $220.00 from $205.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Bradley Sills has given his Hold rating due to a combination of factors that reflect both optimism and caution regarding Snowflake’s future performance. The company reported a strong first quarter, with product revenue exceeding expectations, driven by the success of new offerings like Dynamic Tables and Snowpark. These products have shown promising early results, contributing to the company’s growth in the technology and retail sectors.
However, despite these positive developments, there are concerns about the deceleration in net revenue retention, which has been a trend over the past few years. While revenue growth remains robust, the addition of Global 2000 customers has slowed, indicating potential challenges in expanding the customer base. Additionally, while margin and free cash flow trends are favorable, the overall growth in new workloads may not be sufficient to counterbalance the slowing growth in Snowflake’s core business. These mixed signals have led to a Hold rating, reflecting a balanced view of the company’s prospects.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $200.00 price target.
Based on the recent corporate insider activity of 212 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SNOW in relation to earlier this year.