© Reuters.
Analysts at Wolfe Research downgraded Snowflake (NYSE:) shares to Market Perform from Outperform and removed a price target of $160 per share.
Analysts took a step down after another downgrade to Snowflake’s forecast earlier this week. The downward guide “leaves us less confident about near- and long-term growth and growing competition from MSFT and Databricks, creating additional execution headwinds,” they said in a client note.
Analysts are also concerned about the lofty valuation, as the shares are trading at “~15x CY24 EV/Sales (a ~84% premium to the HWG comp)”.
SNOW stock was cut to Rosenblatt yesterday as analysts moved from Buy to Neutral.
“Snowflake has experienced slower sales growth and productivity since Easter. In addition to ongoing transaction review and cloud optimization, older customers are re-evaluating data retention policies. This has allowed customers to reduce storage requirements (say from 5 years to 3 years), which impacts storage revenue and Snowflake’s compute business,” they wrote in a note.
Shares of Snowflake are down half a percent in pre-opening Friday.
