Snowflake (NYSE:SNOW) stock is on the move Tuesday after Rosenblatt Securities analyst Blair Abernethy upgraded the shares.
This upgrade has Abernethy bumping shares of SNOW stock up to a “buy” rating from the former “neutral” rating. That matches analysts’ consensus rating of “buy” for the shares. This comes from 20 “buy” ratings, seven “hold” ratings, and two “sell” ratings.
While the Rosenblatt Securities analyst did upgrade SNOW stock, they also dropped its price target. This saw them dropping it from $325 per share to $255 per share. Even so, that still represents potential upside of 62% over the stock’s closing price on Monday. Also, the analysts’ consensus price target for SNOW shares is sitting at $275.47.
So what’s behind the upgrade for SNOW stock today? Here’s what Abernethy said in a note obtained by CNBC.
"Given the ongoing enterprise Digital Transformation momentum, strong Q1 growth reported by the leading Cloud Service Providers (CSP’s), and Snowflake’s healthy +160% Net Revenue Retention (NRR) rate, we expect Snowflake to meet or marginally exceed our Q1 Product Revenue growth estimate of 81% y-o-y"
