Needham analyst Mike Cikos maintained a Buy rating on Snowflake (SNOW – Research Report) today and set a price target of $230.00.
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Mike Cikos has given his Buy rating due to a combination of factors including Snowflake’s impressive quarterly performance and optimistic future outlook. The company reported product revenue that surpassed guidance by 3.8%, which is particularly noteworthy given the scale of the company and previous management comments. Additionally, Snowflake’s management has provided guidance for the next quarter that exceeds the expectations of sell-side analysts and has also raised the full-year outlook, reflecting their confidence in the current consumption environment and new product traction.
Furthermore, the company is making strategic investments in its ProServ and Sales & Marketing teams, which are expected to drive future product revenue growth. The increase in headcount in these areas is seen as a positive indicator of Snowflake’s commitment to expanding its market presence and accelerating revenue growth. These factors collectively underpin the Buy rating, as they suggest that Snowflake is well-positioned to achieve significant growth in the coming quarters.
In another report released today, Wells Fargo also maintained a Buy rating on the stock with a $225.00 price target.