Crispr Therapeutics shares tumble after significant earnings miss
On Thursday, Piper Sandler, a financial services firm, raised its price target on Snowflake Inc . (NYSE: NYSE:SNOW) to $215 from $208, while maintaining an Overweight rating on the company’s shares. Currently trading at $166.19, the stock has experienced a -10.15% decline over the past week, though it maintains a strong 43.84% gain over the last six months. The adjustment follows Snowflake’s reported $35 million top-line beat against the mid-point guidance and a 28% year-over-year product growth. According to InvestingPro data, the company’s revenue growth remains robust at 30.28% over the last twelve months.
The firm highlighted Snowflake’s robust consumption strength and was particularly encouraged by the triple-digit growth in new products such as Snowpark, which saw its revenue surpass $100 million for the year, accounting for 3% of product sales. Analysts at Piper Sandler noted that the demand environment for Snowflake appears healthy, with in-period Net Revenue Retention (NRR) improving and current Remaining Performance Obligations (cRPO) growth stabilizing at 27% year-over-year, consistent with the previous year’s performance. InvestingPro analysis shows the company maintains a healthy financial position with a current ratio of 1.88, indicating strong liquidity to meet short-term obligations.
The financial services firm expressed confidence in Snowflake’s growth prospects, especially with the introduction of new products that are expected to contribute to growth acceleration in the second half of the year. Based on these observations, Piper Sandler raised their price target, citing higher estimates and higher Free Cash Flow (FCF) margins, which increased to 33% from the prior 32%.
Snowflake Inc., described as a high-quality data software franchise by Piper Sandler, is poised to sustain a growth rate of over 20% alongside FCF margins exceeding 25%. The firm reiterated its Overweight rating, identifying Snowflake as one of their top ideas for 2025 due to the company’s efficient growth model and the ongoing product cycle.
In other recent news, Snowflake Inc. reported its financial results for the fourth quarter of fiscal year 2025, exceeding analyst expectations. The company announced an earnings per share of $0.30, significantly higher than the forecasted $0.17, and reported revenue of $986.8 million, surpassing the expected $956.22 million. Snowflake’s product revenue for the quarter was $943 million, marking a 28% year-over-year increase. Jefferies and Canaccord Genuity both maintained their Buy ratings for Snowflake, with a price target of $220. Jefferies highlighted the company’s strong product revenue growth and operating margin, while Canaccord noted that Snowflake’s product revenue exceeded their estimates by $35 million. Snowflake’s full-year fiscal 2025 product revenue reached $3.5 billion, a 30% increase from the previous year. Looking ahead, Snowflake provided guidance for fiscal year 2026, projecting a 24% increase in product revenue. The company anticipates product revenue of $4.28 billion, with a non-GAAP operating margin of 8% for the year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.