By Dhirendra Tripathi
Investing.com – Snowflake (NYSE:SNOW) shares rose 6% Tuesday as Rosenblatt Securities upgraded the stock to a buy, citing several tailwinds it believes will help the company exceed the brokerage’s estimates.
Rosenblatt’s Blair Abernethy has given a $285 target for the stock. This is nearly 27% higher than its current level of $225.
Snowflake will report its April quarter earnings, its first for the financial year, on May 26.
“Given the healthy IT spending environment so far this year, the accelerating digital transformation trends, and the strong first quarter performance from the leading cloud service providers, we expect Snowflake to meet and possibly exceed our 93% year-on-year product revenue growth estimate,” Abernethy wrote.
Snowflake’s product revenue growth in the fourth quarter of last financial year was 116% from the year-ago period. Its total revenue in the last quarter was $190 million and $109 million in the first quarter of last financial year.
The analyst estimates Snowflake to report revenues of $209 million in the first quarter of this financial year. This will translate into a 92% year-on-year growth.