Snowflake (SNOW) - Get Report traded higher on Thursday after receiving several price-target upgrades from Wall Street analysts, who liked what they saw from the company's first earnings report as a public company.
Snowflake reported better-than-expected third-quarter sales of $159.6 million, up 115% from a year ago and above analysts’ forecasts of $147.5 million. However, the company posted a per-share loss of $1.01, wider than analysts’ forecasts that called for a loss of 26 cents.
Still, Morgan Stanley raised its one-year price target to $265 from $220 on what it sees as “strong” consumption trends behind Snowflake’s year-over-year sales growth, though cautioned that fourth-quarter guidance was “just” in line with consensus forecasts. The bank has an equal-weight rating on Snowflake’s shares.
Piper Sandler, meantime, raised its one-year target to $312 from $264, noting it was “impressed” with the firm’s triple-digit product revenue growth and that Snowflake’s product gross margin exceeded 70% for the first time, though cautioned that a lack of more material upward revisions to forward estimates suggests “balanced” risk/reward.
Piper Sandler has an overweight rating on Snowflake.