Wedbush Securities analyst Daniel Ives is pounding the table on cloud computing stock Snowflake (SNOW).
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In a note to clients, Ives, a four-star rated analyst, increased his price target on SNOW stock to $210 from $190, which implies a 21% increase from current levels. He also maintained a Buy-equivalent outperform rating on the shares.
Ives acknowledges that Snowflake has trailed many of its peers in the cloud computing space, but says a turnaround for the stock is likely just around the corner. Ives writes that Snowflake, a Montana-based cloud data storage company, is seeing stronger demand for its products that “meet growing enterprise needs.”
Rocky Road
Ives bullish call is a much needed shot in the arm for SNOW stock. The company’s share price has declined 14% over the last 12 months, badly underperforming the market. Other leading cloud stocks, such as ServiceNow (NOW) and Salesforce (CRM), have each seen their share prices increase more than 20% in the last 12 months.
Ives sees improvements ahead for Snowflake, noting that the company has issued a forecast of its Fiscal fourth-quarter product revenue that was better than Wall Street expected, while also issuing bullish margin guidance. Ives writes that Snowflake is positioned to, “capture the massive growth opportunity taking place in the market while its prudent cost approach assists with bottom-line expansion.”
Is SNOW Stock a Buy?
The stock of Snowflake has a consensus Strong Buy rating among 32 Wall Street analysts. That rating is based on 28 Buy and four Hold recommendations issued in the last three months. The average SNOW price target of $198.25 implies 12.23% upside from current levels.
