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On Monday, KeyBanc Capital Markets maintained its Overweight rating on shares of Snowflake Inc . (NYSE: NYSE:SNOW), with a price target of $168. The firm's stance comes after conducting a survey of 13 Snowflake partners and customers, aiming to gauge their spend intentions and product interest, including their take on Snowflake's Iceberg, recent security breach, and GenAI initiatives.
The survey suggested a positive outlook for Snowflake's future, indicating potential upside to the company's FY25 guidance due to the impact of its Cortex product. Additionally, Snowflake is seen as a potential beneficiary of the growing interest in GenAI technology. Concerns regarding the recent customer breach were downplayed, with the incident not expected to significantly hinder the company's progress.
The feedback also highlighted that the migration from on-premises data solutions to cloud-based platforms remains a significant opportunity for Snowflake. This transition is likely to continue driving demand for the company's services. However, the survey also prompted a note of caution regarding the pace at which Snowpark, another product offering, is being adopted by customers.
Recently, Goldman Sachs has reaffirmed a Buy rating for Snowflake, emphasizing the company's potential in the Generation AI space and its commitment to product innovation. The firm has also made several trade recommendations based on upcoming earnings reports, including a suggestion to purchase Snowflake calls ahead of the company's earnings release.
Snowflake's Executive Vice President of Engineering and Support, Grzegorz Czajkowski, has announced his resignation, effective July 19, 2024. While the company searches for a replacement, Co-Founder Thierry Cruanes will oversee the engineering and support teams.
Analysts from UBS and BofA Securities maintain a neutral stance on Snowflake, citing increased competition from Databricks and recent security concerns. Despite these challenges, Snowflake has launched a suite of new AI development tools and announced the launch of Polaris (NYSE:PII) Catalog, an open catalog for Apache Iceberg, reflecting its dedication to innovation and strategic positioning within the data cloud market.
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