Cloud computing-based data warehousing company Snowflake Inc. (NASDAQ:SNOW) reported better-than-expected results for its fiscal year second quarter, sending its shares higher Thursday.<\/p>\n
The Snowflake Analysts: Piper Sandler analyst Brent Bracelin maintained an Overweight rating on Snowflake shares and increased the price target from $290 to $305.<\/p>\n
Needham analyst Jack Andrews maintained a Hold rating on the shares.<\/p>\n
JMP Securities analyst Patrick Walravens maintained a Market Perform rating and lifted the price target from $300 to $320.<\/p>\n
Snowflake Witnessing RobustTrends, Piper Sandler Says: Strong enterprise consumption contributed to yet another quarter of triple-digit product growth for Snowflake, Piper Sandler analyst Bracelin said. The annualized product revenue scaled to above a $1 billion run-rate, the analyst said.<\/p>\n
The addition of 25 new Fortune 500 customers, he said, further validates robust enterprise adoption and brings the Fortune 500 logo penetration to 42%.<\/p>\n
Remaining performance obligation growth moderated, in line with expectations, due to a tougher comparison with the year-ago period, the analyst said. On the other hand, cRPO growth accelerated for the third consecutive quarter, he said.<\/p>\n
Based on robust consumption and customer addition trends, Piper Sandler raised its revenue estimates for 2022 and 2023.<\/p>\n
Related Link: Is Snowflake's Stock Doomed After A Cross Below Support? <\/p>\n
Needham's Key Takeaways On Snowflake: Snowflake is benefiting from the growing demand for modern data workloads as customers use its platform to unlock new and previously unaddressable use cases, Needham analyst Andrews said.<\/p>\n
Additionally, the company's Data Cloud vision is resonating well with new customers as they look to avoid data silos and create new AI\/ML applications, the analyst said.<\/p>\n
Legacy migrations appear to be contributing more modestly to growth as customers face technical hurdles to move workloads, he said.<\/p>\n
\"Despite our positive view on SNOW's fundamentals and what appears to be a significant runway of market opportunity to grow large accounts, we remain HOLD-rated solely based on valuation.\"<\/p>\n
JMP On 5 Reasons Why Snowflake Offers Long-Term Capital Appreciation: Snowflake offers as an excellent opportunity for long-term capital appreciation, Walravens said.<\/p>\n
Firstly, Snowflake's cloud data platform is disrupting the database management systems market, which is valued at about $65 billion, the analyst said. Secondly, Snowflake has a highly differentiated, modern, cloud-native architecture, he said.<\/p>\n
Thirdly, the company's business uses a consumption model and is demonstrating best-in-class net retention rates, Walravens said. Fourthly, the team executing against Snowflake's vision is one of the strongest teams in the software industry, the analyst said.<\/p>\n
Finally, Snowflake is demonstrating its strong product market fit, and has landed nearly 5,000 customers, including 212 of the Fortune 500, and 116 customers that generate over $1 million per year in product revenue, according to JMP.<\/p>\n
SNOW Price Action: Snowflake shares were up 7.66% at $305.26 at the close Thursday.<\/p>\n
Related Link: 4 Snowflake Analyst On Q4 Results: 'A New Enterprise Data Cloud Platform Of Choice' <\/p>\n
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Snowflake Shares Rally On Q2 Results: What 3 Analysts Are Saying - Benzinga - Benzinga<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Cloud computing-based data warehousing company Snowflake Inc. (NASDAQ:SNOW) reported better-than-expected results for its fiscal year second quarter, sending its shares higher Thursday. The Snowflake Analysts: Piper Sandler analyst Brent Bracelin maintained an Overweight rating on Snowflake shares and increased the price target from $290 to $305 Continue reading