Piper Sandler maintains Snowflake (SNOW:NYE)with an Overweight rating and lowers the target price to $164

Piper Sandler maintains Snowflake Inc. with an Overweight rating  and lowers the target price to $164 from $165 on the company’s stock.

Last week Robert W Baird Initiated Snowflake Inc. with an Outperform rating and set the target price at $200.

Based on the Snowflake Inc. stock forecasts from 30 analysts, the average analyst target price for Snowflake Inc. is USD 251.11 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 147.95Snowflake Inc.’s stock price has changed by -7.35% over the past week, +23.93% over the past month and -41.01% over the last year.

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.