Snowflake (NYSE:SNOW) has made its share of advancements as a data warehousing operation. But what gave it a little extra spark—and sent share prices up over 6% at one point in Thursday’s trading—was a new report from Scotiabank. Scotiabank—via analyst Patrick Colville—had plenty of good to say about Snowflake, its operations, and its market.
Colville hiked his outlook on Snowflake, jumping from “sector perform” to “sector outperform” and also bumping up the price target. Colville boosted the target from $137 to a whopping $212 per share, nearly double the original expectations. The reason? Colville noted that projected revenue for Fiscal Year 2024 is “…firmly underwritten.” Moreover, Colville also noted that an improvement in the product cycle is likely forthcoming starting in Fiscal Year 2025.
However, not all is necessarily well within Snowflake. Despite substantial gains today, one report noted that insiders have been abandoning ship and taking the cash with them. Just over the last year, one insider sold $89 million worth of stock and did so back when it was around $170 per share. That left more than a few analysts deeply concerned; a sell price only slightly less than current prices is worth noting. Though the more Colville describes reasons to hike the price target to well above their sale price, the more it looks like a collective bad move on insiders’ part.
Indeed, many analysts are on Snowflake’s side here. With 25 Buy ratings, six Holds, and one Sell, Snowflake stock is considered a Strong Buy. Further, with an average price target of $188.89, Snowflake stock also offers investors 4.02% upside potential.
