By Sam Boughedda
Loop Capital analysts told investors in a note on Friday that the firm sees a buying opportunity in Snowflake Inc (NYSE:SNOW).
The analysts, who have a Buy rating and $200 price target on the stock, said that after the firm attended a marketing event hosted by Snowflake regarding its Data Cloud product vision, several incremental data points emerged supporting their view that it is still early days into SNOW's "enormous market opportunity."
"SNOW is well-positioned as the clear leader in the space and is pulling away, implying several more years of compelling and profitable growth ahead," said the analysts. "SNOW's competitive standing continues to improve, particularly against Databricks and Amazon (NASDAQ:AMZN) Redshift."
The analysts also revealed that a Snowflake services partner that they spoke with noted that some of Databrick's customers are slowly drifting toward Snowflake.
"This partner, who also partners with Databricks and others, attributes the shift to Databrick's heritage with software developers versus Snowflake's increasing focus and outreach with tech-savvy business users, which is a much larger addressable market," said the analysts.
"We regard SNOW as one of a handful of stocks that growth investors could just buy and put away. For that reason, we view the recent pullback in the stock as an opportunity for investors to build positions in this high-quality franchise."
Snowflake shares are currently down more than 3% on Friday.