Snowflake Inc. (SNOW:NYE) Analysts are Bullish with a Strong Buy rating, $241 target

STA Research
by: STA Research
snowflake stock forecast

Snowflake Inc. Stock Analysis:

Based on the Snowflake stock forecast from 30 analysts, the average analyst Snowflake stock price is targetted at USD 241.05 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 7 negative signals. At the last closing, Snowflake Inc.’s stock price was USD 170.44. Snowflake stock price target has changed by -0.24% over the past week, +15.20% over the past month and -41.53% over the last year.

 

About Snowflake Stock (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.

 

Most Recent Analyst Ratings for Snowflake:

Snowflake Stock Forecast:

UBS Securities said they downgraded Snowflake stock forecast to Neutral from a Buy, on the rationale that they think expenditures on cloud computing sectors might get cut under the tightening economic environment. They also noted about increasing competition in the space, on the contrary most analysts and investment professionals believe that the industry is still growing at a rapid pace, which leaves room for expanding market share despite new entrants. The analyst, Karl Keirstead did however notch the target on the stock $10 higher.

However at the same time, Barclays Capital maintained their Overweight rating on the snow stock forecast and has a 12-month target of $215 on Snowflake stock price, with the company being one of the best in the sector.

Akre Capital Management just recently confirmed that Their 13F portfolio added Snowflake’s stock to their set of holdings.

ClearBridge Aggressive Growth Strategy  was recently very postive of the company’s outlook in it’s second quarter letter to clients, which said:

“Snowflake operates a cloud-based data platform for small and medium-sized businesses and enterprise customers. The company is a key beneficiary of software spending moving to the cloud, as well as the increasing strategic importance of data. With the potential to address the large and growing market for data cloud, a roughly $250 billion plus opportunity by 2026, we see a long runway for growth ahead. Although the company is already profitable, we believe Snowflake still has significant room for free cash flow margin expansion.”

 

What we like:

(Bullish Signals)

High market capitalization

Snowflake stock forecast: 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:

(Bearish Signals)

Poor risk-adjusted returns

Snowflake stock forecast: 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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