Wells downgrades Snowflake with premium multiple ‘tougher to defend’

Wells Fargo downgraded Snowflake to Equal Weight from Overweight with a price target of $130, down from $200. The firm says Snowflake’s premium multiple is “tougher to defend” with its technology differentiation in question in a “rapidly evolving era of open data formats.” New management, macroeconomic impacts and the recent data breach are “stacking up at a tough time,” the analyst tells investors in a research note. Wells notes that its quarterly survey of Snowflake customers over $1M suggests potential churn from the data breach and a downtick in expectations.