Snowflake draws bullish calls from Wall Street, though some analysts say stock is fully valued
- At least 19 investment banks initiated coverage of Snowflake on Monday, with price targets ranging from $214 to $350.
- The stock rose 2.5% to close at $243.97.
- Analysts agree that Amazon, Microsoft and Google are Snowflake’s top competitors, but they have differing views on how much of a threat those companies pose.
Less than a month after Snowflake debuted on the stock market with the biggest software IPO in history, Wall Street analysts are rushing to make predictions on the cloud database company, which is already valued at over $67 billion.
At least 19 analysts initiated coverage of Snowflake on Monday following the post-IPO quiet period, according to reports collected by CNBC.
Among the nine buy ratings, the most bullish prediction came from Truist, which gave Snowflake a price target of $350, or 47% above Friday’s close.
Another nine analysts started coverage with the equivalent of a hold rating. Only Atlantic Equities recommends selling the shares, with a price target of $214.
Snowflake climbed 2.5% to $243.97 on Monday, a mostly strong day for tech stocks. The company, which sells cloud-based software to help companies store, process and visualize vast amounts of data, closed its IPO on Sept. 18, raising $4.2 billion. The stock more than doubled in its first day of trading but has been flat since, meaning only investors who got in at the IPO price have made much money so far.
Bulls to bears
The predominant opinion is that Snowflake has plenty of business momentum as companies move from traditional on-premises databases into the cloud. Revenue increased more than 130% in the first half of the year
But some analysts are concerned that the