Snowflake stock rallies as ‘blizzard’ of AI product announcements make Wall Street happyPublished: June 28, 2023 at 12:35 p.m. ET
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Wallace WitkowskiFollow
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Snowflake CEO Frank Slootman delivering Tuesday’s keynote at Summit 2023 on June 27, 2023, in Las Vegas. SNOWFLAKE
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Referenced Symbols
SNOW
4.36%
NVDA
-2.38%
MSFT
0.24%
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Shares of Snowflake Inc. stormed higher Thursday after analysts said partnerships and a “blizzard of product announcements” unveiled at this week’s Summit 2023 event positioned it as a foundational AI player.
Snowflake SNOW, 4.36% shares rallied as much as 8% to an intraday high of $191.94, following a series of target price hikes Thursday following the company’s meeting with Wall Street analysts.
TD Cowen analyst Derrick Wood, who has an outperform rating and a $205 price target, up from $185, said the company’s analyst day showed Snowflake has “a vision to be a complete AI stack.”
Read: Snowflake stock rallies as CEO details AI offerings, focuses on data potential
“Overall, we felt like SNOW is laying the foundation to be in a leading position in the emerging GenAI wave,” Wood said in a note.
Blocks of that foundation include partnerships with Nvidia Corp. NVDA, -2.38% and Microsoft Corp. MSFT, 0.24% along with a “blizzard of product announcements,” as Citi Research analyst Tyler Radke put it, that would allow users to build their own AIs using data that never leaves Snowflake.
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Read: Snowflake adds partnerships with Nvidia and Microsoft for AI double play
Radke said Snowflake appears to have “upside opportunities” to its $10 billion revenue target by fiscal 2029, Radke said. The Citi analyst had a buy rating and a target price of $189.
Analysts from firms such as Piper Sandler, Goldman Sachs, JP Morgan, Baird, Mizuho all raised their target prices on the stock resulting in an average target price of $189.24, compared with a previous $180.22, according to FactSet data.
Of the 44 analysts who cover Snowflake, 28 had buy-grade ratings, 14 had holds, and two had sells, according to FactSet. |
