Technology

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We raise our price target by $8 to $208, using an EV/Sales ratio of 21x our FY 25 (Jan.) sales view, above peers due to SNOW’s growth history but below its 3-year average (~31x) as growth continues decelerating despite AI excitement. We lower our FY 25 sales view to $3.47B from $3.63B and initiate a FY 26 view at $4.55B. SNOW posts Jan-Q sales of $775M (+32% Y/Y) and EPS of $0.35 (+150%), both above consensus, while guiding for softer-than-expected sales in FY 25. We think the guide is conservative, and we see upside from new products like Document AI, with support from its $5.2B backlog (+$1.5B Q/Q) and still-high NRR (131%). In a surprise announcement, Sridhar Ramaswamy (previously SVP of AI) has assumed the CEO role

The following is a summary of the Snowflake Inc. (SNOW) Q4 2024 Earnings Call Transcript: Financial Performance: Snowflake reported Q4 product revenue of $738 million, a 33% year-over-year growth. 83 customers contribute over $5 million in trailing 12-month product revenue, up from 75 in the previous quarter. Remaining performance obligations grew by 41% year-over-year to $5.2 billion, with approx. 50% expected to be recognized as revenue within the next year. Non-GAAP product margin improved by roughly 300 basis points year-over-year to 78%. Ended the quarter with $4.8 billion in cash, cash equivalents, and long-term investments. Looking ahead to Q1 and full year FY ’25, expects product revenue between $745 million and $750 million, and approximately $3.25 billion, respectively, with Non-GAAP product gross margin at 76%, operating margin at 6% and adjusted free cash flow margin of 29%. Business Progress: Signed its largest deal ever in Q4 – a five-year, $250

Piper Sandler analyst Brent Bracelin maintains Snowflake with a Overweight and lowers the price target from $250 to $240.

Snowflake’s (SNOW) shares tumbled early Thursday after offering a downbeat short- and long-term product revenue outlook, while the company announced the retirement of its chief executive. Frank Slootman will step down from his role as head of the cloud-based data platform company, it said late Wednesday. Sridhar Ramaswamy, who previously served as the firm’s senior vice president of artificial intelligence, will succeed Slootman as CEO, effective immediately. “There is no better person than Sridhar to lead Snowflake into this next phase of growth and deliver on the opportunity ahead in AI and machine learning,” Slootman, who will continue to serve as chairman of the board, said in a statement. The stock dropped 22% in premarket trading. “We have an enormous opportunity ahead to help all customers leverage AI to deliver massive business value,” according to Ramaswamy. “My focus will be on accelerating our ability to bring innovation to our customers

RBC Cuts Price Target on Snowflake to $246 From $255 on Lower Revenue Estimates, Keeps Outperform Rating.

Canaccord Genuity analyst Kingsley Crane reiterates Snowflake with a Buy and maintains $230 price target.

Macquarie analyst Frederick Havemeyer upgrades Snowflake (NYSE:SNOW) from Neutral to Outperform and raises the price target from $182 to $205.

Snowflake (NYSE:SNOW) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 02/29/2024 18.85% Oppenheimer $240 → $220 Maintains Outperform 02/29/2024 10.75% Macquarie $182 → $205 Upgrades Neutral → Outperform 02/29/2024 24.26% Canaccord Genuity → $230 Reiterates Buy → Buy 02/29/2024 14.53% B of A Securities $265 → $212 Maintains Neutral 02/29/2024 10.75% Mizuho $255 → $205 Reiterates Buy → Buy 02/29/2024 13.45% Truist Securities $250 → $210 Maintains Buy 02/29/2024 29.66% Needham $265 → $240 Maintains Buy 02/29/2024 -5.46% Morgan Stanley $230 → $175 Downgrades Overweight → Equal-Weight 02/29/2024 29.66% Piper Sandler $250 → $240 Maintains Overweight 02/28/2024 13.45% Wedbush $144 → $210 Maintains Neutral 02/27/2024 35.06% Piper Sandler $250 → $250 Reiterates Overweight → Overweight 02/27/2024 56.67% Citigroup $255 → $290 Maintains Buy 02/22/2024 21.56% UBS $185 → $225 Maintains Neutral 02/21/2024 43.17% Needham $225 → $265 Maintains Buy 02/20/2024 35.06% Truist