JP Morgan & Company Upgrades Snowflake Inc.(SNOW:NYE) to an Overweight rating

STA Research
by: STA Research
Snowflake Inc.

JP Morgan & Company’s analyst, Mark Murphy upgraded Snowflake Inc. to an Overweight rating form a Equal Weight rating, and maintained their previous target price of $165 on the company’s stock.

Based on the Snowflake Inc stock forecasts from 28 analysts, the average analyst target price for Snowflake Inc is USD 261.20 over the next 12 months. Snowflake Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Snowflake Inc is Slightly Bearish, which is based on 3 positive signals and 6 negative signals. At the last closing, Snowflake Inc’s stock price was USD 127.36Snowflake Inc’s stock price has changed by +3.93% over the past week, -9.99% over the past month and -48.91% over the last year.

Snowflake Inc. provides a cloud-based data platform in the United States and internationally. The company’s platform offers Data Cloud, which enables customers to consolidate data into a single source of truth to drive meaningful business insights, build data-driven applications, and share data. Its platform is used by various organizations of sizes in a range of industries. The company was formerly known as Snowflake Computing, Inc. and changed its name to Snowflake Inc. in April 2019. Snowflake Inc. was incorporated in 2012 and is based in Bozeman, Montana.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

What we don’t like:

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector.

 

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