Fannie Mae, Freddie Mac shares tumble after conservatorship comments
Stifel maintained its buy rating and $220.00 price target on Snowflake Inc . (NYSE: NYSE:SNOW) following investor meetings with the company’s investor relations team earlier this week. The stock, currently trading at $211.28, sits near its 52-week high of $214.83, having delivered an impressive 67.82% return over the past year. The meetings focused on Snowflake’s momentum with existing data engineering and science capabilities, including Snowpark and Dynamic Tables.
The company also discussed its strategy for newer products announced last week, including Crunchy Data and Openflow. Management indicated that their current outlook does not include any meaningful revenue contribution from these newer offerings, which Stifel characterized as "duly conservative." This comes as Snowflake maintains strong revenue growth of 27.5% year-over-year, according to InvestingPro data.
Snowflake acknowledged that Microsoft (NASDAQ:MSFT) Azure represents a disproportionately lower share of their revenue compared to the overall hyperscaler mix. The company is "aggressively working" on improving its relationship with Microsoft, which could drive additional revenue in coming quarters and years.
The meetings reinforced Stifel’s belief that existing data engineering offerings should begin to more substantially supplement stabilization within Snowflake’s core SQL business. The firm sees potential for additional upside from newer products and a stronger Azure relationship. InvestingPro analysis shows 24 analysts have revised their earnings upward for the upcoming period, with expectations for profitability this year.
Stifel analyst Brad Reback expressed confidence that customer usage of Snowflake’s newer products will increase over the coming years, potentially providing growth beyond what is currently reflected in the company’s outlook. For deeper insights into Snowflake’s growth metrics and valuation analysis, investors can access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, several analysts have shared their perspectives on Snowflake Inc. following the company’s recent events and announcements. UBS maintained its Buy rating with a price target of $265, highlighting robust investments in the data layer and affirming a positive outlook on Snowflake’s competitive positioning. Stifel also reiterated a Buy rating with a $220 target, noting favorable feedback from partners and customers regarding Snowflake’s product offerings and competitive edge. Cantor Fitzgerald echoed this sentiment with an Overweight rating and a $242 price target, citing the strategic acquisition of Crunchy Data and a focused go-to-market strategy as key strengths.
Needham analysts maintained their Buy rating with a $230 price target, focusing on Snowflake’s push into AI capabilities and commitment to open standards. BTIG raised its price target to $235 while keeping a Buy rating, highlighting the company’s AI initiatives and product roadmap as positive developments. These ratings reflect a general consensus among analysts that Snowflake’s strategic initiatives and product enhancements position the company well in the data management and cloud services sector. Despite the positive sentiment, there were no updates to Snowflake’s financial model, and the company continues its search for a new Chief Financial Officer.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.