Snowflake Inc. (SNOW) PT Lowered to $325 at Rosenblatt

Rosenblatt analyst Blair Abernethy lowered the price target on Snowflake Inc. (NYSE: SNOW) to $325.00 (from $380.00) while maintaining a Neutral rating following solid Q4 results on multiple compression.

The analyst commented, "Wednesday after market, Snowflake reported strong Q4 results that were ~4% above our revenue expectations and slightly lower-than-expected operating expenses. It’s FY23 outlook, however, is being impacted by a near-term $97m headwind resulting from recently introduced platform enhancements that, while improving efficiency and attractiveness of the platform for customers, results in lower consumption levels. We had been modeling FY23 revenue growth of 69%, but have now lowered this to 66%, while our FY24 growth rate remains 53%. Following Snowflake’s Q4 earnings release, we are marginally adjusting our revenue forecasts and decreasing our target price to $325 (was $380), which primarily reflects recent multiple compression among the Company’s peer group. We expect Snowflake to continue its rapid growth at scale over the next couple of years, and we remain a Neutral on the stock until a more attractive entry point becomes available."

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