Snowflake Stock Has 16% Upside, According to 1 Wall Street Analyst
A weak revenue outlook in Snowflake's (NYSE: SNOW) last business update sent the stock price sharply lower. The share prices are down 20% year to date, but analysts at KeyBanc see a buying opportunity.
KeyBanc initiated coverage of the stock with an overweight (buy) rating and a $185 price target, which are usually projections for where the stock might trade in the next 12 months or so. The new price target represents a 16% upside from Thursday's close. The firm likes the cloud provider's prospects as companies continue migrating legacy data systems over to the cloud.
Snowflake reported product revenue growth of 33% year over year in the fourth quarter, which would seem strong enough to support the stock's valuation, but management's guidance calls for growth to slow to 26% to 27% year over year in the first quarter.
Source Fool.com
