Benzinga - by Priya Nigam, Benzinga Staff Writer.
Shares of Snowflake Inc (NYSE: SNOW) have been in focus as the company continues to transform from a data warehouse to a data cloud provider.
Snowflake launched machine learning and other products to capture additional workloads and is poised to benefit from rising demand for artificial intelligence, according to DA Davidson.
The Snowflake Analyst: Gil Luria initiated coverage of Snowflake with a Buy rating and price target of $200.
The Snowflake Thesis: The premium at which the stock trades is warranted, given the company’s industry-leading growth rates, Luria said in the initiation note.
Check out other analyst stock ratings.
“Even with recent deceleration as customers optimize their cloud spend on the platform and new competition enters the cloud data arena, we believe that Snowflake's positives outweigh the near-term negatives as heightened demand for AI-related workloads gives the company a unique position to benefit from artificial intelligence tailwinds,” the analyst wrote.
“We believe that Snowflake's rich Data Cloud platform, coupled with their seasoned management team, is a duo that we would not want to bet against,” Luria added.
SNOW Price Action: Shares of Snowflake had risen by 4.22% to $166.82 at the time of publication Friday.
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