Analyst Bradley Sills of Bank of America Securities reiterated a Hold rating on Snowflake (SNOW – Research Report), with a price target of $205.00.
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Bradley Sills’s rating is based on various factors impacting Snowflake’s stock performance. Despite a robust Q3 and an impressive 45% increase in the stock price since November, Sills maintains a Hold rating due to the stock’s current valuation and competitive pressures. The stock trades at a multiple that is considered a discount compared to large-cap peers, primarily due to the cyclical nature of its consumption-based business model.
Additionally, channel feedback suggests Snowflake is lagging behind competitors like Databricks in critical areas such as AI and developer-led workloads. This competitive disadvantage is expected to limit Snowflake’s growth to its core data warehouse services in the short term. While Sills has raised the price objective for Snowflake to $205, reflecting anticipated Q4 growth, he remains cautious about the company’s ability to capitalize on new workloads, thus justifying the Hold rating.
In another report released yesterday, UBS also maintained a Hold rating on the stock with a $190.00 price target.
Based on the recent corporate insider activity of 193 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SNOW in relation to earlier this year.