Bank of America Securities analyst Bradley Sills reiterated a Buy rating on Snowflake yesterday and set a price target of $280.00.
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Bradley Sills has given his Buy rating due to a combination of factors that highlight Snowflake’s strong performance and growth potential. The company reported impressive Q2 results, with product revenue growth accelerating to 32% from 26%, largely driven by its core analytics market. This growth is bolstered by Snowflake’s improved competitive position and the perception of the company as a versatile data platform capable of handling various workloads, including analytics, data science, collaboration, and AI.
Furthermore, Snowflake’s net revenue retention has stabilized and reaccelerated to 125%, indicating strong customer expansion within the core analytics category. The company’s ability to secure expansion deals and its potential for free cash flow margin growth, supported by a 30% growth trajectory, positions it as a leading free cash flow compounder in the large-cap software space. These factors underpin Sills’s confidence in Snowflake’s transition into a comprehensive data platform, justifying the Buy rating and a price objective of $280.
In another report released today, KeyBanc also reiterated a Buy rating on the stock with a $275.00 price target.
SNOW’s price has also changed moderately for the past six months – from $173.690 to $200.390, which is a 15.37% increase.