Snowflake Stock – Snowflake (SNOW) Gains After an Upgrade to ‘Buy’ at Goldman Sachs as Data Cloud is Driving Sustainable Growth
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The company is “well positioned to capitalize on a generational shift of data and analytics to the cloud,” according to Goldman Sachs analyst Kash Rangan, who also lifted the price target to $275.00 per share from $270.00.
“Given the company’s strong competitive positioning, we continue to view Snowflake as well positioned to capitalize on a generational shift of data and analytics to the cloud, with strong secular tailwinds including cloud adoption, big data, AI/ML, and secure data sharing which we expect will drive durable growth for the foreseeable future,” the analyst wrote in a note sent to clients.
Rangan adds that Snowflake will “continue to replace incumbent warehousing solutions owing to their scalable and elastic cloud native data platform while also capitalizing on net new workloads and use cases as DX drives greater digitization within the enterprise and business intelligence (BI) and analytics remains a top priority for spending.”
Moreover, a large TAM offers a further upside for the company to expand. The market can further increase as the company continues to enhance its platform’s scalability, ease of use, and efficiency enable new use cases like secure data sharing through the company’s data exchange.
Overall, the analyst sees the potential for “the company to introduce a long-term outlook alongside additional details on new capabilities like support for unstructured data.”
Elsewhere in the software sector, Rangan started Mongodb (NASDAQ: MDB) with a “Buy” rating and a PT of $310.00 per share, while SolarWinds (NYSE: SWI) and DropBox (NASDAQ: DBX) earned a “Sell” rating with price targets of $16.00 per share and $26.00 per share, respectively. Anaplan (NYSE: PLAN), Bentley Systems (NASDAQ: BSY), and Altair Engineering (NASDAQ: ALTR) were all initiated with a “Neutral” rating.