Snowflake a Buy on Generational Shift to the Cloud: Goldman By Investing.com

By Dhirendra Tripathi

Investing.com – Snowflake (NYSE:SNOW) shares rose more than 8% Friday after Goldman Sachs (NYSE:GS) raised its rating to buy.

Analyst Kash Rangan also raised the price target to $275 per share from $270. That’s a near 35% hike from the stock’s current level of $204.

Rangan pointed out that the stock has more than halved since its peak in December, calling it a chance to snap up an undervalued name.

The analyst said the cloud-based data warehousing company has a strong competitive positioning and expects it to capitalize on a “generational shift” of data and analytics to cloud. He sees strong secular tailwinds including cloud adoption, big data, AI/ML, and secure data sharing driving growth.

Rangan said a large addressable market offers a further upside for the company.