4 Snowflake Analyst On Q4 Results: 'A New Enterprise Data Cloud Platform Of Choice'

4 Snowflake Analyst On Q4 Results: 'A New Enterprise Data Cloud Platform Of Choice'

Cloud-based data warehousing company Snowflake Inc. SNOW reported fourth-quarter revenue Wednesday that more than doubled from a year ago and a loss that narrowed from the year-ago quarter. The full-year revenue guidance was about in-line with estimates.

The Snowflake Analysts: Rosenblatt Securities analyst Blair Abernethy reiterated a Neutral rating on Snowflake with a $285 price target. 

Piper Sandler analyst Brent Bracelin maintained an Overweight rating and a $312 price target.

Credit Suisse analyst Brad Zelnick maintained a Neutral rating and lowered the price target from $310 to $275.

Deutsche Bank Securities analyst Patrick Colville upgraded Snowflake shares from Hold to Buy and raised the price target from $270 to $300.

Rosenblatt On Snowflake's Business Resilience: Snowflake's revenues and remaining performance obligations exceeded Rosenblatt's expectations, Abernethy said in a note.

Other notable metrics include a 168% net retention rate and 88% year-over-year increase in large customers, the analyst said.

COVID-19 has had a neutral impact, he said.

Many enterprises are moving ahead with digital transformation plans several years earlier than they had planned before COVID-19, Abernethy said. 

Due to scale, product mix, and improved discipline around sales contracting, gross margins are tracking ahead of Rosenblatt's expectations, the analyst said.

"Despite the Covid crisis' significant impact, we see Snowflake's business model as having continued resilience, and now expect it to deliver 90% RPO growth in FY22e (ending January 31, 2022) and 46% in FY23e." 

Why Snowflake Is A Cloud Platform of Choice: Snowflake finished fiscal year 2021 on a high note with a $405 million quarter-over-quarter jump in RPO that rose by over 200% year-over-year to $1.33 billion, Piper Sandler analyst Bracelin said in a note. 

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