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Wolfe upgrades Snowflake to Outperform on product momentum

Wolfe upgrades Snowflake to Outperform on product momentum

Wolfe Research analyst Alex Zukin last night upgraded Snowflake (SNOW) to Outperform from Peer Perform with a $235 price target ahead of the Q4 earnings report on February 26. The firm sees better core consumption trends, a more favorable hyperscaler competitive backdrop, and more product momentum driving some of the highest sales growth in its coverage for Snowflake. The combination of channel checks “clearly pointing” towards stabilizing, and even improving, consumption trends and the numbers in recent quarters are backing that up, the analyst tells investors in a research note. Wolfe sees potential for further multiple expansion for Snowflake.

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