Ives ups price target to suggest roughly 12% upside and kept a ‘Outperform’ rating.
Snowflake stock rose over 1% in Monday’s early premarket session after an analyst increased the price target for the cloud-based data platform company.
In a note published on Monday, Wedbush analyst Daniel Ives upped the price target for Snowflake stock to $270 from $250, implying 12% upside potential from its Friday’s closing price of $240.74. He said the stock is well-positioned to capitalize on elevated demand for AI use cases over the next 12-18 months. The analyst maintained an ‘Outperform’ rating for the stock.
Snowflake On Track For Growth Acceleration
Ives opined that Snowflake has “ample” room to accelerate growth by fine-tuning its”go-to-market” strategy that combines “recent engineering, innovations, and marketing” to further scale its core capabilities. According to the analyst, the company is still in the early innings of capitalizing on artificial intelligence (AI) demand. He noted that the company was experiencing stronger deal flow, with 50% of the logos leveraging Snow for AI cases and 25% of organizations leveraging its AI capabilities on a weekly basis.
“SNOW continues to put an emphasis on retrieval quality for AI within Cortex to let users do more with their data early in the data life cycle to bring together data into one unified view to optimize workflows, and optimize efficiencies,” Ives said.
Ives believes the company is well-positioned to capitalize on elevated demand for AI use cases over the next 12-18 months.
Analyst Brace For Solid Q3 Print
Ives’s ation marked a back-to-back upward price target adjustment for Snowflake. Last Friday, Oppenheimer analyst Ittai Kidron lifted his price target from $295 to $175 and maintained an ‘Outperform’ rating, the Fly reported. He attributed his optimism to his belief that the company will report solid quarterly results among the analytics, data, infrastructure and security group. The firm’s channel checks showed strong third-quarter deal flow, and fourth-quarter pipeline generation and normal competitive dynamics.
Snowflake stock has gained about 56% this year.
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