Tuesday, Baird adjusted its price target for Snowflake Inc . (NYSE:SNOW) shares to $165 from the previous $200, while maintaining an Outperform rating on the stock.
The firm's analysis suggests a positive stance on the company's long-term position despite a year-to-date performance that has not met expectations.
The adjustment comes ahead of Snowflake's scheduled earnings report for the second fiscal quarter on August 21. Baird anticipates solid results for the quarter, including a likely modest upside, which aligns with the company's recent performance trends.
The revision of the price target reflects several challenges Snowflake has faced, including weaker initial guidance, a transition in CEO leadership, and ongoing concerns regarding a data breach and competition from Databricks. These factors have contributed to a negative sentiment among investors, as per discussions with Baird.
Despite these challenges, Baird believes that the current quarter's results may not immediately act as a catalyst for change. However, the firm's outlook suggests that Snowflake's risk/reward balance is tilted towards potential gains in the future.
Baird's commentary highlights the company's resilience and potential for recovery, indicating a belief in Snowflake's capability to overcome the recent hurdles it has faced. The market will be looking forward to seeing whether the upcoming earnings report will reflect Baird's positive expectations.
In other recent news, Snowflake Inc. has been the focus of several analyst adjustments. Citi has maintained a Buy rating on Snowflake shares but lowered its price target to $200, expressing cautious optimism ahead of the company's second fiscal quarter earnings.
The firm anticipates the potential for an upside in the numbers and possibly a significant raise for the full year. Meanwhile, Scotiabank has reiterated a Sector Outperform rating on Snowflake, with a price target of $195, highlighting the company's strong market position and potential for slight outperformance in product revenue for the second fiscal quarter.
TD Cowen has cut the price target for Snowflake to $180, while maintaining a buy rating, expressing optimism about the company's potential to exceed financial expectations.
Evercore ISI has trimmed its price target to $170, expecting a modest potential increase to the F3Q estimates, while KeyBanc Capital Markets maintains an Overweight rating, anticipating a robust earnings report for the second fiscal quarter.
BofA Securities has reduced its price target for Snowflake to $160, maintaining a Neutral stance, awaiting further evidence of sustained consumption recovery and success with new products.
These are recent developments and reflect the ongoing analysis and adjustments by various firms. As always, investors are advised to consider these perspectives in their decision-making process.
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