Snowflake (SNOW) Stock Surges on Strong Sales and Outlook, Analysts Bulled-up

December 2, 2021 7:15 AM EST
Get Alerts SNOW Hot Sheet
Price: $253.52 +3.60%

Rating Summary:
    18 Buy, 10 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 16 | New: 32
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Shares of Snowflake (NYSE: SNOW) are up 14.5% in pre-open Thursday after the company delivered strong Q3 results and outlook.

Revenue came in at $334.4 million to top the analyst consensus of $305.5 million. Product revenue soared to $312.5 million, marking 110% year-over-year growth.

“Snowflake saw momentum accelerate in Q3, with product revenue growing 110% year-on-year to $312.5 million. Continued international expansion during the quarter resulted in product revenue from the EMEA and APJ regions up 174% and 219% year-on-year, respectively,” said Frank Slootman, Chairman and CEO, Snowflake.

“Our vertical industry focus is an important evolution of our selling motion and Snowflake continues to see broad industry adoption.”

For this quarter, SNOW is calling for Q4 product revenue of $345-$350 million (up 94-96%) and FY product revenue of $1.126 billion - $1.131 billion (up 103-104%).

Mizuho analyst Gregg Moskowitz reiterated a Buy rating and a $450.00 per share price target on SNOW shares after a “robust quarter.”

“Large deal activity appears to be building, and international markets are picking up momentum. More broadly, we maintain that SNOW's offerings are substantially ahead of the competition at this time. We also believe SNOW is enabling customers to transform from large data stores to data-driven organizations, and that companies will increasingly standardize on its platform. And while SNOW trades at a large premium, we reiterate our belief that the shares will likely continue to outperform as the company grows at elevated rates over the NTM and beyond,” Moskowitz said in a client note.

Stifel analyst Brad Reback raised the price target to $350.00 per share from the prior $300.00 on the Hold-rated SNOW shares.

“We believe there is a sizeable opportunity for significant revenue growth to continue as these customers further ramp their consumption of the SNOW data platform. Snowflake's disruptive consumption based data-platform and pricing model, coupled with workload secular-growth, should generate sizable new logos gains and strong up-sell/ cross-sell activity, yielding 50%+ top-line growth in coming years. Given recent success and growth opportunities, we expect Snowflake to remain in investment mode for the foreseeable future, although we believe there is ample leverage in the model over time,” Reback wrote in his report.

Snowflake shares were trading nearly 12% higher YTD after closing at $311.00 yesterday.

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