Snowflake stock: analyst says shares could double from here

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Snowflake Inc (NYSE: SNOW) has been in a freefall since the start of this year, but a Rosenblatt Securities’ analyst says there’s reason to believe the days of pain are finally behind it.

Snowflake stock could climb to $255 a share

Blair Abernethy, on Tuesday, lifted his rating on the stock to “buy” and announced a price target of $255 a share that represents a close to 100% upside from here. The analyst wrote:

Given ongoing enterprise digital transformation momentum, strong Q1 growth reported by leading cloud service providers, and Snowflake’s healthy 160%+ NRR, it’ll meet or marginally exceed our Q1 product revenue growth estimate of 81% YoY.

Shares of Snowflake Inc are down nearly 70% versus their year-to-date high in mid-November 2021, which, as per Abernethy, makes its very attractive from the valuation standpoint as well.

Abernethy had an even higher PT on Snowflake

The Rosenblatt Securities’ analyst, however, had an even higher $325 price target on Snowflake that he trimmed this morning citing macro headwinds. In his note, Abernethy added:

The new price target is due to recently rising interest rates, comparable software companies’ multiple compression, and with increasing concerns over the potential for broader economic impacts of the war in Ukraine.

His bullish call arrives a day before the cloud-computing based data warehousing company is scheduled to report its financial results for the first quarter. Earlier in May, Snowflake announced a partnership with Dell.  

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