Snowflake Inc. (SNOW:NYE) Analysts Boost Targets on Earnings beat, Strong Buy rating

STA Research
by: STA Research
Snowflake Inc.

Snowflake Stock Forecast Analysis:

Based on the Snowflake stock forecast from 32 analysts, the average analyst target price for Snowflake Inc. is USD 235.64 over the next 12 months. Snowflake stock forecast suggests an average analyst rating of Strong Buy. Currently the highest target is from Morgan Stanley at $274, with a Overweight rating.  Guggenheim has the lowest target at $125, with a Sell rating on the stock.

Stock Target Advisor’s own stock analysis of Snowflake Inc. is Slightly Bearish, which is based on 3 positive signals and 7 negative signals. At the last closing, Snowflake Inc.’s stock price was USD 159.49Snowflake Inc.’s stock price has changed by -8.53% over the past week, +7.05% over the past month and -43.32% over the last year.

Snowflake Inc. has 60 Crowd ratings in the past 6 months with an average Crowd target price for the stock at USD 308 which is the forecast for over the next 12 months. Snowflake Inc.’s average Crowd rating is a Strong Buy.

About Snowflake Inc. (SNOW:NYE)

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.

Snowflake Stock Forecast News:

Cloud data platform provider Snowflake on Wednesday reported earnings that beat the second quarter earnings estimates.

The company reported a loss of 70 cents per share on revenue of $497 million against the forecasted $467 million. Snowflake has forecasted revenue to range from $500 to $505 million for the third quarter, reaching between $1.91 and $1.92 revenue for the full fiscal year. Company excutive have estimated gross profit margins at 75 percent, operating income margins  at 2% and adjusted free cash flow at 17% higher. Snowflake recorded 6808 customers in the second quarter, which also beat forecasts.

Insider Trades: CEO Frank Slootman recently sold 1,727 shares of stock in with an average price of $136.18, totaling $235,182. Slootman currently owns 138,551 shares fetching a $18,867,875 valuation.

 

Analysts raise targets on Earnings:

 

Most Recent Ratings for Snowflake Stock:

 

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.

Negative free cash flow

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

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

Disclaimer

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