Deutsche Bank Downgrades Snowflake Inc. (SNOW) to Hold; 'Winter is Coming'

(Updated - December 11, 2020 8:20 AM EST)

Deutsche Bank analyst Patrick Colville downgraded Snowflake Inc. (NYSE: SNOW) from Buy to Hold with a price target of $335.00.

The analyst comments "With Snowflake trading at 52x FY23E (Jan ’23) sales, the risk/reward, in our opinion, is now balanced. The expiry of the lockup could weigh on share price accretion from here, as early holders sell and SNOW's free float rises from 32.2m to 345.8m shares in March ’21. We continue to believe Snowflake is in the sweet spot for key secular trends of this decade: data driven decision-making and cloud adoption. Yet, pent-up demand for high-multiple names, such as Snowflake, may be limited as we wrap up 2020 and investors look to protect their year. Any profit taking around the lockup expiry could be exaggerated by tight liquidity typical in late December and early January, when 2 tranches vest. We reiterate our $335 target price, which is 10% below current levels."

For an analyst ratings summary and ratings history on Snowflake Inc. click here. For more ratings news on Snowflake Inc. click here.

Shares of Snowflake Inc. closed at $367.56 yesterday.

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