© TheStreet Snowflake Stock Surges as Analysts Boost Price Targets
Snowflake stock jumped Thursday after the data-analytics software company reported mixed second-quarter results and analysts raised their price targets.
Shares of the San Mateo, Calif., company at last check jumped 4.7% to $297.05.
Snowflake posted a net loss of 64 cents a share on revenue of $272.2 million. Analysts polled by FactSet were expecting a net loss of 15 cents a share on revenue of $256.1 million.
Mizuho analyst Gregg Moskowitz lifted his price target to $340 from $320 while keeping a buy rating on the shares, according to the Fly.
The company reported a very good second quarter, with healthy revenue upside driven by broad-based consumption strength, Moskowitz said. He says Snowflake is showing much-stronger-than-expected operating leverage.
Video: Snowflake reports beat on revenue (CNBC)
Snowflake reports beat on revenue
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Cowen analyst J. Derrick Wood raised his price target on Snowflake to $335 from $310 while affirming an outperform rating on the shares.
Wood said strength was seen across all geographies, verticals and across commercial and enterprise with strong growth in seven-figure deals. He said he would be a buyer of the shares at current levels.
Goldman Sachs analyst Kash Rangan boosted his price target to $340 from $300 and reiterated a buy rating on the shares.
The company reported strong Q2 results with outperformance across key metrics, Rangan said in a research note.
With another consistent 7% product-revenue beat, Rangan said, Snowflake continues to execute well with momentum in large enterprise and a best in class net revenue retention rate of 169%.
The analyst said he continued to view Snowflake as well positioned to replace incumbent data warehousing solutions owing to its scalable and elastic cloud native platform.
Deutsche Bank analyst Patrick Colville raised the firms price target on Snowflake to $320 from $265 and kept a buy rating on the shares following last nights results.
The analyst says Snowflakes ability to still grow remaining performance obligations by triple digits is very impressive. He expects strong demand trends and more favorable duration comparisons should likely drive acceleration in RPO growth from here.
Last week, Snowflake saw its biggest intraday decline since March after Cleveland Research in a report said signings growth slowed from the first quarter, while consumption growth was likely similar, at best, to first-quarter levels.
Snowflakes shares also took a hit in June when analysts reacted to the companys long-term forecast of 10% operating margin and 30% product-sales growth.
This article was originally published by TheStreet.
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