At least 19 analysts initiated coverage of Snowflake on Monday, with price targets ranging from $214 to $350.
At the most optimistic end of the range, Truist says Snowflake can grow on average 60% a year through fiscal 2027, reaching $7 billion in annual sales at that point and becoming the fastest software company ever to reach $5 billion.
"Though shares are not cheap at current levels, we believe that current valuation is fair on a growth adjusted basis and that the tailwinds for growth are stronger than market expectations which offer further upside going forward," the analysts wrote. DA Davidson, which rates the stock a "buy" with a $300 price target, says that Amazon's product, Redshift, and Google's BigQuery are the main competitors.
But this optimism is rare: Only five analysts out with new reports predict the stock will hit at least $300 in the next 12 months.A banner for Snowflake Inc. is displayed celebrating the company's IPO at the New York Stock Exchange in New York, U.S., September 16, 2020."This is one of the most impressive stories we have come across in our 15 years covering the space," wrote analysts from Canaccord.
Canaccord estimates the company will generate revenue of $1.08 billion in the fiscal year ending January 2022, giving it an estimated enterprise value to forward sales ratio of 74. That's above the most high-valued cloud stocks like
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