Snowflake, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Mark Moerdler from Bernstein maintained a Hold rating on the stock and has a $237.00 price target.
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Mark Moerdler has given his Hold rating due to a combination of factors influencing Snowflake’s current market position. The company’s recent quarterly results were solid, surpassing revenue expectations by a small margin and slightly raising its full-year guidance. However, these results were not enough to meet the heightened expectations of investors, leading to a decline in stock value in after-hours trading.
Despite stable growth indicators and promising advancements in AI workloads, the stock is already trading at a high valuation, which limits its potential for immediate gains. Additionally, while Snowflake is showing innovation under new leadership, increased competition in its core market poses a risk. The company’s newer initiatives are still developing, and more evidence is needed to confirm their potential for significant growth. As a result, Moerdler opts to maintain a cautious stance with a Hold rating, reflecting a balanced view of the company’s prospects.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $284.00 price target.