Needham analyst Mike Cikos has maintained their bullish stance on SNOW stock, giving a Buy rating on October 1.
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Mike Cikos has given his Buy rating due to a combination of factors that highlight Snowflake’s strong market position and future potential. The recent Snowflake World Tour in New York City showcased significant customer enthusiasm for the platform, underscoring its growing role as a strategic choice for businesses. The event also featured important product announcements, such as Cortex AI for Financial Services and Snowpark Connect for Apache Spark, which demonstrate Snowflake’s commitment to innovation and addressing customer needs.
Despite the cautious approach of customers due to the consumption-based pricing model, there is a clear indication that they are in the early stages of a long-term journey to fully utilize Snowflake’s capabilities. Additionally, while there is a measured interest in AI due to its nascent stage in the adoption cycle, the long-term potential is promising. These factors collectively contribute to the positive outlook and justify the Buy rating for Snowflake’s stock.
Cikos covers the Technology sector, focusing on stocks such as Palo Alto Networks, Varonis Systems, and CrowdStrike Holdings. According to TipRanks, Cikos has an average return of 14.1% and a 58.59% success rate on recommended stocks.
In another report released on October 1, Wells Fargo also initiated coverage with a Buy rating on the stock with a $275.00 price target.