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On Wednesday, Rosenblatt sustained its Buy rating on Snowflake Inc . (NYSE:SNOW) with a consistent price target of $180.00. The firm has incorporated the company's recent $2.3 billion convertible debt issuance into its financial forecasts, along with the full exercise of over-allotment options.
The completion of Snowflake's convertible debt offering has prompted updates to Rosenblatt's financial models. These updates include the addition of the debt issue and the introduction of a forecast for the fiscal year 2027, as well as minor adjustments to the existing models.
Rosenblatt's stance on Snowflake remains positive, with the analyst stating that the current stock price supports the firm's Buy recommendation. The price target of $180 reflects the analyst's confidence in the stock's potential performance over the next 12 months.
Snowflake's recent financial maneuvering has provided the company with additional capital. The successful issuance of convertible debt, which is now accounted for in Rosenblatt's financial estimates, marks a significant financial development for the data warehousing company.
The analyst's commentary underscores the firm's belief in Snowflake's value proposition and financial strategy. Rosenblatt's unchanged price target of $180 indicates a steady outlook for the company's share performance in the near term.
In other recent news, Snowflake Inc. has reported a 30% year-over-year increase in product revenue, reaching $829 million for its second quarter of fiscal year 2025. In response to this strong performance, the company has raised its full-year product revenue outlook.
Snowflake also announced plans to issue $2 billion in Convertible Senior Notes, aiming to finance capped call transactions and repurchase shares of its common stock. This development led to Scotiabank and Deutsche Bank maintaining their respective Buy ratings on Snowflake, with Deutsche Bank adjusting the price target to $180, down from $220.
Morgan Stanley reiterated its Equalweight rating on Snowflake, emphasizing the company's commitment to enhanced execution and quicker product innovation. Despite investor concerns, Snowflake's management has increased the full-year Product revenue guidance to a 26% year-over-year growth.
InvestingPro Insights
While Rosenblatt maintains a positive outlook on Snowflake with a Buy rating and a $180 price target, recent InvestingPro data provides additional context for investors. Snowflake's market capitalization stands at $36.95 billion, reflecting its significant presence in the data warehousing sector. However, the company's financial metrics reveal some challenges. With a P/E ratio of -36.21, Snowflake is not currently profitable, aligning with an InvestingPro Tip that notes the company has not been profitable over the last twelve months.
Despite these profitability concerns, Snowflake's revenue growth remains strong, with a 31.21% increase over the last twelve months to $3.21 billion. This growth trajectory supports Rosenblatt's optimistic stance. Another InvestingPro Tip highlights that Snowflake holds more cash than debt on its balance sheet, which could provide financial flexibility as the company pursues growth initiatives.
Investors seeking a more comprehensive analysis can access additional insights through InvestingPro, which offers 7 more tips for Snowflake beyond those mentioned here.
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