Snowflake Inc. (SNOW)

• Analyst: Bank of America Merrill Lynch
• Analyst Rank: #16
• Rating: Neutral
• Target Price: Downgraded from USD 200 to USD 160
• Date: August 16, 2024

Bank of America Merrill Lynch has maintained a “Neutral” rating on Snowflake but has reduced their target price from USD 200 to USD 160. This downgrade reflects a cautious outlook, possibly due to recent performance issues, market conditions, or adjustments in growth expectations.

Stock Forecast & Analysis

Snowflake Inc. Stock Forecast Analysis

Analyst Target Price:

• Average Target Price: The average target price for Snowflake Inc., as forecasted by 31 analysts, is USD 199.93 for the next 12 months. This target represents an optimistic projection of the stock’s value over the coming year, suggesting that analysts expect the stock to appreciate significantly from its current level.

Analyst Rating:

• Overall Rating: Snowflake Inc. has an average analyst rating of “Strong Buy.” This high rating indicates strong confidence in the company’s future performance and potential for substantial growth. A “Strong Buy” rating generally reflects positive expectations about the company’s ability to outperform the market and deliver impressive financial results.

Stock Target Advisor’s Analysis:

• Advisor Rating: Stock Target Advisor’s analysis of Snowflake Inc. is “Slightly Bearish.” This rating is derived from a combination of signals that reflect both positive and negative aspects:
  • Positive Signals: There are 3 positive signals indicating favorable factors or trends supporting the stock’s potential. These could include strong earnings reports, positive market developments, or strategic advancements by the company.
  • Negative Signals: There are 6 negative signals pointing to potential risks or issues that could impact the stock’s performance. These might include market volatility, competitive pressures, or company-specific challenges that could hinder growth.

Current Stock Price and Performance:

• Last Closing Price: At the last closing, Snowflake Inc.’s stock price was USD 127.30. This is the current market price of the stock.
• Recent Price Changes:
  • Past Week: The stock price has increased by 10.60% over the past week, indicating a positive short-term trend and recent investor confidence or favorable developments.
  • Past Month: Over the past month, the stock price has decreased by 6.22%. This decline suggests some short-term challenges or negative market factors affecting the stock’s performance.
  • Past Year: The stock price has fallen by 15.75% over the last year, highlighting a significant decline. This long-term drop could be attributed to broader market trends, company-specific issues, or shifts in investor sentiment.

Summary:

Snowflake Inc.’s stock forecast is characterized by a generally positive long-term outlook based on the average target price and the “Strong Buy” rating from analysts. The projected target price of USD 199.93 indicates substantial growth potential from the current price level of USD 127.30. Stock Target Advisor’s “Slightly Bearish” stance, supported by more negative signals than positive ones, reflects some caution regarding the stock’s near-term performance.

The recent stock performance shows a short-term recovery with a notable increase over the past week, but the declines over the past month and year suggest ongoing challenges. Investors should consider both the optimistic long-term projections and the current negative signals when evaluating Snowflake Inc.’s stock for potential investment.