Snowflake price target lowered to $185 from $225 at Loop Capital

Loop Capital analyst Mark Schappel lowered the firm’s price target on Snowflake to $185 from $225 and keeps a Buy rating on the shares ahead of the Q2 results. The firm expects Snowflake to exceed its non-GAAP EPS and product revenue estimates, which are at the high end of guidance, and while tonight’s results are unlikely to be a catalyzing print, they should be “fine” such that the firm is comfortable owning the stock into the quarter, the analyst tells investors in a research note. Loop believes the new CEO must calm fears around looming longer-term challenges by showing progress by driving continued high growth in the core data warehouse business, accelerating customer adoption for building data apps on Snowflake, and transforming the company to a broader AI data play for data scientists and engineers that build AI/ML solutions on its platform, the firm says.