Snowflake (NYSE:SNOW) saw its shares skyrocket Wednesday, coming off the company’s investor day on Tuesday, at which it reiterated full-year guidance. Goldman Sachs reiterated its buy rating on the stock following the event, while Morgan Stanley said it would stay overweight.
William Blair analyst Jason Ader resumed coverage on Snowflake shares with an outperform rating, noting the company is not only a leader in the analytical database market, but checks show its platform “is the easiest to use” and its consumption model allows for a “transparent view of customer engagement and macro conditions.”
Additionally, the Frank Slootman-led Snowflake has a “best-in-class” net revenue retention, indicating how sticky the platform is; the company is continuing to add new products, leveraging its data cloud platform and it should see “strong tailwinds” from generative AI, as validated by the recent Nvidia (NASDAQ:NVDA) partnership .
After attending the Snowflake Summit and investor day, Ader said he had a greater appreciation for Snowflake’s opportunity and strategy to go beyond data warehousing and help build new, AI-based apps.
Morgan Stanley analyst Keith Weiss, who has an overweight rating and a per-share price target of $215, noted that while the AI narrative does not offset the volatility of the consumption model, it does give visibility into expanding into a $290B total addressable market.
SNOW shares leaped $12.35, or 7%, to $189.35.