Snowflake shares surge on J.P. Morgan upgrade

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Snowflake ($NYSE:SNOW) shares surged on Thursday after J.P. Morgan upgraded the stock, citing the company’s strong showing in a recent CIO survey. Analyst Mark Murphy upgraded Snowflake to overweight from neutral and maintained the firm’s $165 price target on the stock, implying a 30% upside. In its CIO survey, Snowflake was ranked as the top data warehouse for the third year in a row. Murphy said the survey results suggest that Snowflake is gaining market share against its competitors. The analyst also cited the company’s strong revenue growth, which accelerated in the first quarter of 2021. Looking ahead, Murphy said he expects Snowflake to continue to gain market share and grow its revenue at a rapid pace. The stock’s sharp gains on Thursday suggest that investors are bullish on the company’s prospects.

Market Reaction

Until now, media coverage of Snowflake’s IPO has been mostly mixed.

VI Analysis

The company’s fundamentals reflect its long term potential. The below analysis of Snowflake is made simple by the VI app. The VI Star Chart shows that Snowflake is strong in asset and growth, but weak in profit and dividend. Snowflake has an intermediate health score of 5/10 with regard to its cashflows and debt. This means that it might be able to safely ride out any crisis without the risk of bankruptcy. Snowflake is classified as a ‘cheetah’ company. This type of company achieved high revenue or earnings growth but is considered less stable due to lower profitability. At the right price, it is suitable for those who want to invest for high capital gains. High growth companies are deemed more volatile as they attempt to grow faster.

Summary

The investment bank JPMorgan Chase & Co. upgraded Snowflake to “overweight” from “neutral,” sending the stock up as much as 12.4% in premarket trading. The move comes as Snowflake prepares to report its first quarter results as a public company after its initial public offering last month. “We see an attractive set-up for Snowflake as it enters its first full quarter of trading as a public company,” J.P. Morgan analyst Mark Murphy wrote in a note to clients. The upgrade comes as Snowflake prepares to report its first quarter results as a public company after its initial public offering last month. “We see an attractive set-up for Snowflake as it enters its first full quarter of trading as a public company,” J.P. Morgan analyst Mark Murphy wrote in a note to clients.