By Senad Karaahmetovic
Baird analyst William Power initiated the research coverage of Snowflake (NYSE:SNOW) and MongoDB (NASDAQ:MDB) at Outperform/High Risk.
Both companies are described as “next-generation data leaders”. Power assigned a $200 per share price target on SNOW stock and $360 on MDB.
Snowflake, in particular, is seen as the market and growth leader in its data cloud market.
“From its origins as a cloud native data warehouse provider with strong data governance and security, SNOW has established itself as the data cloud platform leader, supporting all data types and workloads, global and multi-cloud reach, seamless data sharing and increasing analytics and application development capabilities.”
On the other hand, MongoDB is seen as “the undisputed leader in NoSQL databases, rapidly grabbing share of new database deployments with improved agility, scale and flexibility. The document framework also aligns with its developer-focused go-to-market approach.”
While the analyst acknowledges valuation and recession risks associated with these two stocks - hence the high-risk rating - he still recommends them for long-term investors. Power also urged investors to get more aggressive on any pullbacks in SNOW and MDB.