Snowflake, the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Derrick Wood from TD Cowen maintained a Buy rating on the stock and has a $275.00 price target.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Derrick Wood has given his Buy rating due to a combination of factors that highlight Snowflake’s strong growth potential. The company’s core Cloud Data Warehouse (CDW) and Data Engineering segments continue to show robust demand, with positive developments in AI, although revenue from AI remains relatively small. Wood anticipates a solid performance in the upcoming quarter, expecting Snowflake to exceed growth targets, though not at the same level as the previous quarter’s exceptional results.
Despite concerns that investor expectations might be high, Wood remains optimistic about Snowflake’s medium-term prospects. The company’s recent strong quarterly performance, driven by significant workload migrations from large customers, has led to a notable increase in share value. Additionally, Snowflake’s expanding role as a central data hub for AI agents and its growing popularity in data pipelines further support Wood’s positive outlook. He expects continued buying interest, especially if there is any pullback in share prices.
In another report released on November 17, Bank of America Securities also reiterated a Buy rating on the stock with a $310.00 price target.
Based on the recent corporate insider activity of 271 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SNOW in relation to earlier this year.