Shares of data-warehousing firm Snowflake (NYSE:SNOW) are surging at the time of writing following its annual developer conference and investor day. Wall Street analysts signaled a promising risk-reward ratio for the stock. Analyst Jason Ader from William Blair recommenced coverage on Snowflake, attributing an outperform rating. He admired the firm’s stronghold in the analytical database sector, the user-friendly nature of its platform, and the transparency it offers in terms of customer engagement and overall market conditions. Ader praised Snowflake’s “best-in-class” net revenue retention, indicative of the platform’s strong customer base and its ongoing development of novel products.
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In addition, Morgan Stanley analyst, Keith Weiss, maintained an overweight rating and a price target of $215 per share. He sees the firm well-positioned for Generative AI despite the volatility of the consumption model. Weiss noted Snowflake’s bullish stance on its expanded partnership with Microsoft (NASDAQ:MSFT) as it doubles its spending commitment on Azure, marking it as Snowflake’s fastest-growing hyperscaler partnership.
Overall, analysts have a Moderate Buy consensus rating on SNOW stock based on 22 Buys, seven Holds, and one Sell assigned in the past three months, as indicated by the graphic above. Nevertheless, the average price target of $184.42 per share implies 3.59% downside potential.
