Cloud service company Snowflake got optimistic outlooks from analysts at Deutsche Bank and Piper Sandler.
Deutsche Bank analyst Patrick Colville initiated coverage of Snowflake with a buy rating and a $305 price target. Emphasizing the relevance of data analytics, Colville said, “We see a world where the use of data is democratizing, many more roles and functions are becoming data consumers. … Our estimates call for data warehouse (analytical processing) spending to grow to $45.2bn in 2024, a 13% CAGR from 2019.”
Brent Bracelin of Piper Sandler began coverage of Snowflake with an overweight rating and a $264 price target, citing the company’s new cloud-native software layer, that Bracelin believes has the potential to redefine and modernize the enterprise data stack.
While Bracelin did say that there are high valuation risks that could lead to elevated stock volatility over the next six months, he is also sanguine about Snowflake’s “unique cloud product and proven leadership team capable of executing on a compelling 10-year growth trajectory” . According to the analyst, a premium valuation is warranted for longer-term oriented investors looking out 3-5 years based on several factors. He cited “triple-digit growth last quarter at $0.5 billion revenue scale, a proven leadership team stacked with A-plus talent and a clear path to multi-billion dollar revenue run-rate within two years.”
According to Tickeron's report, SNOW is expected to report earnings to rise 14.29% to -23 cents per share on December 30.The last earnings report on September 30 showed earnings per share of -20 cents, beating the estimate of -23 cents.