Analysts Revise Snowflake Stock Price Targets After Earnings Report
Thursday, 22 August 2024, 11:54
Analysts Revise Snowflake Stock Price Targets After Earnings Report
Analysts are reacting to Snowflake's recent earnings beat, with updated stock price targets reflecting mixed opinions in the financial community.
Earnings Performance and Guidance
- Snowflake reported earnings per share of $0.18, surpassing expectations of $0.16.
- Revenue reached $869 million, exceeding the anticipated $852 million.
- Management has raised guidance for Q3 and FY25, indicating optimism despite challenges.
Skepticism Among Analysts
Despite the positive earnings report, some analysts express concerns:
- Guggenheim’s John DiFucci maintains a neutral rating, citing slowing IT sector growth.
- BTIG analysts echo this sentiment, pointing to competitive pressures affecting margins.
- Loop Capital and Baird have lowered price targets, reflecting cautious outlooks for Snowflake.
Opportunities Highlighted
On the other hand, some analysts remain optimistic:
- Evercore ISI reiterates an outperform rating with a target of $170.
- Goldman Sachs labels Snowflake a conviction buy, setting a target of $220.
- Jefferies and Citi share mixed yet cautious perspectives, also adjusting targets.
The divide among analysts underscores that Snowflake's future will depend significantly on navigating the competitive landscape and the impact of leadership changes.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.