Snowflake received another upgrade on Tuesday, as Wall Street continues to see positive trends ahead for the cloud-based data analytics company.
William Blair analyst Kamil Mielczarek lifted the stock’s rating to Outperform from Market Perform. Last week, Barclays upgraded the stock to Overweight.
Mielczarek’s take is based on Snowflake’s (ticker: SNOW) “better-than-expected growth in 2021 and the recent pullback in the stock price.” The analyst has a $330 price target.
Shares fell 1.9% to $ 284.20 shortly after the market open Tuesday, while the Nasdaq Composite was down 1.7%.
Snowflake, founded in 2013, provides cloud data warehousing software. It provides a host of products and security analysis tools to the federal government, financial services, healthcare, media and entertainment, and other industries.
Mielczarek listed several tailwinds, many of which were accelerated by the pandemic, including the “accelerated pace of digitization, the growth in data, and the increased need for analytics to deliver competitive differentiation.”
The stock has declined by 12.3% since WIliam Blair initiated coverage in mid-December 2020, while the S&P 500 and Nasdaq Composite have increased by a respective 25.7% and 16.8%.
“We remain cautious about increased competition and market pressures long term,” said Mielczarek. “But believe the company will be able to sustain strong growth over the next few years.”
Barclays’ call on Snowflake was part of a broad look at enterprise software companies for 2022. Analyst Raimo Lenschow said that end-demand for enterprise software remains strong, though noted that investors should stay selective.
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