- The stock price of cloud-based data warehousing company Snowflake Inc (NYSE: SNOW) increased by 2.51% from $237.99 at the previous close to $243.97 today. This is why.
The stock price of cloud-based data warehousing company Snowflake Inc (NYSE: SNOW) increased by 2.51% from $237.99 at the previous close to $243.97 today. Along with a broader market rally, the stock price of Snowflake went up for a couple of reasons including price target increases and a Bloomberg report about a deal with Goldman Sachs.
Truist analyst Joel Fishbein initiated a “Buy” rating for Snowflake with a $350 price target. Fishbein noted that Snowflake has a unique technology advantage — which should drive a “dominant competitive position in the data cloud” in the short- and long-term. And Fishbein also pointed out that Snowflake is addressing an acute problem and it is redefining the monetization of data as legacy providers are unable to deal with complex IT environments.
Another reason why the stock price of Snowflake increased is due to a Bloomberg report about Snowflake signing a multimillion-dollar deal with Goldman Sachs earlier this year. That deal was a renewal of an existing contract that was signed in Q2.
Snowflake went public in the middle of September and it was the largest IPO of 2020. The company’s stock price more than doubled on the first day of trading. Not only was Goldman Sachs one of the lead underwriters of the IPO, but the financial firm has been using Snowflake’s data analysis for its banking platforms and the Marcus personal loan platform.
This is how some of the other financial firms rated Snowflake today:
JMP Securities – Outperform Rating – $285 price target
BTIG Research – Neutral Rating
Goldman Sachs – Buy Rating – $268 price target
Credit Suisse – Neutral rating – $250 price target
Barclays – Equal weight rating – $256 price target
JPMorgan Chase – Neutral rating – $247 price target
Piper Sandley – Overweight rating – $264 price rating
Cowen – Outperform rating – $295 price target
Mizuho – Buy rating – $300 price target
Deutsche Bank – Buy rating – $305 price target
Loop Capital – Hold rating – $250 price target
Citigroup – Neutral rating
D.A. Davidson – Buy rating – $300 price target
Morgan Stanley – Equal weight rating – $220 price target
Stifel – Hold rating – $250 price target
Oppenheimer – Outperform rating – $300 price target
Canaccord Genuity – Hold rating – $250 price target
Disclosure: I have a small SNOW position in my portfolio.