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Snowflake Surges as Evercore Says Buy; Sees 35% Gain

Published 26/03/2021, 16:57
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By Dhirendra Tripathi

Investing.com – Snowflake (NYSE:SNOW) shares were making a smart move in Friday’s trade, helped by another analyst’s bullish views.

Evercore analyst Kirk Materne called Snowflake the "data cloud category killer," while initiating coverage with an outperform rating and a $311 price target.

The price target is almost a 35% gain from the stock's current price. Snowflake shares jumped 5.5%.

"Snowflake is not for the faint of heart and our bullish view will play out over multiple years, not just the next few quarters," he said in his note.

Earlier this week, UBS started Snowflake with a buy, citing the “extraordinary” growth rate.

Materne believes "there are few software firms over the last decade that have as large a growth opportunity as Snowflake" and that upside opportunity offsets the near-term need to "grow into" the valuation.

The analyst pegged Snowflake’s data warehousing total addressable market at $78 billion by 2024.

 

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