Snowflake upgraded to Neutral after selloff at Monness Crespi

Monness Crespi analyst Brian White upgraded Snowflake to Neutral from Sell without a price target. The analyst says the company’s “calamitous” Q4 has brought an “avalanche of skepticism.” The firm believes fiscal 2025 will be a challenging year for Snowflake, but upgrades the shares on valuation following the recent selloff. While the market “will grow increasingly suspicious of generative AI propaganda,” Snowflake in the long run is well positioned for technology trends, the analyst tells investors in a research note. Monness adds, however, that the company’s margins are thin, valuation is rich, execution is spotty, and the “darkest days of this economic downturn are ahead of us.”