Why Did Snowflake Cut Margin Outlook After A Solid Q1? 11 Analysts Dive Deeper
Shares of Snowflake Inc (NYSE:SNOW) tanked in early trading on Thursday, after the company reported results for its first quarter.
The results came amid an exciting earnings season. Here are some key analyst takeaways.
RBC Capital Markets analyst Matthew Hedberg reiterated an Outperform rating, while raising the price target from $220 to $226.
- KeyBanc analyst Eric Heath reaffirmed an Overweight rating, while lifting the price target from $185 to $200.
- Rosenblatt Securities analyst Blair Abernethy maintained a Buy rating, while raising the price target from $185 to $195.
- Needham analyst Mike Cikos reiterated a Buy rating, while reducing the price target from $240 to $210.
- JPMorgan analyst Mark Murphy reaffirmed an Overweight rating, while raising the price target from $170 to $185.
- Morgan Stanley analyst Keith Weiss maintained an Equal-Weight rating and price target of $175.
- Truist analyst Joel Fishbein reaffirmed a Buy rating and price target of $210.
- Mizuho analyst Gregg Moskowitz reiterated a Buy rating and price target of $205.
- Goldman Sachs analyst Kash Rangan maintained a Buy rating and price target of $220.
- Oppenheimer analyst Ittai Kidron reaffirmed an Outperform rating and price target of $220.
- Piper Sandler analyst Brent Bracelin reiterated an Overweight rating and price target of $240.
- Bank of America Securities analyst Brad Sills maintained a Neutral rating and price target of $200.
Check out other analyst stock ratings.
RBC Capital Markets: Snowflake reported “strong” results for the quarter, with product revenue growing 34% year-on-year to $789.6 million, handsomely beating consensus of $751.5 million, Hedberg said in a note. “This points to a 5.1% beat vs 3.1% beat last qtr,” he added.
Bookings were solid, with deals of over $100 million each in the first and second quarters, the analyst stated. “Large customers also meaningfully increased usage of core offerings in what management views as a stable optimization environment,” he further wrote.
KeyBanc Capital Markets: Snowflake delivered a strong beat and raise quarter, Heath said. “The quarter highlighted Snowflake’s accelerated pace of product innovation in AI and quelled some investor long-term concerns on iceberg,” he added.
Management raised product revenue guidance by $50 million to $3.30 billion, representing 24% growth and beating consensus of $3.27 billion, the analyst stated. “F2H implicitly lowered, we believe, only because mgmt. is electing to be more conservative,” he further stated.
Rosenblatt Securities: Snowflake’s RPOs grew by 46% year-on-year to $5 billion, Abernethy …
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