Snowflake Inc. (SNOW) PT Lowered to $190 at Canaccord Genuity
Canaccord Genuity analyst David Hynes Jr. lowered the price target on Snowflake Inc. (NYSE: SNOW) to $190.00 (from $215.00) while maintaining a Buy rating.
The analyst comments "Key metrics and KPIs from the quarter. Snowflake delivered solid FQ2 results, beating guidance and raising full-year product revenue expectations. Still, the slowing pace of revenue growth and the need to continually innovate to stay ahead in the competitive AI race remain a focal point for investors, in our view. Product revenue of $829M grew 30% y-o-y, a ~$22M beat (+3%), and a gradual decline in growth versus 34% last quarter and 37% in the year-ago period. On the profitability front, product gross margins came down slightly, as expected to 76%, as Snowflake incurs GPU-related costs and fulfills customer demand for newer product features. Non-GAAP operating margins of 5% beat guidance by ~2pts but was down ~3pts y-o-y, and adjusted FCF margins of 7.6% were nicely ahead of consensus."