Snowflake surges to ‘elite territory’ in J.P. Morgan’s annual chief information officer survey.
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Shares of Snowflake were spiking Thursday after the stock received an upgrade to Overweight at J.P. Morgan.
Analyst Mark Murphy raised his rating for Snowflake (ticker: SNOW
) to Overweight from Neutral and maintained a $165 price target.
Murphy’s upgrade was based on the results of J.P. Morgan’s annual chief information officer survey, in which the company surged to “elite territory.”
The survey polled 142 CIOs that control more than $100 billion of IT spending. Snowflake ranked No. 1 in installed base spending intentions, beating out Microsoft ( MSFT
), Alphabet-owned Google ( GOOGL
) Cloud Platform, and CrowdStrike Holdings ( CRWD
). Snowflake also ranked No. 1 among emerging companies whose vision most impressed respondents, Murphy wrote.
“Snowflake enjoys excellent standing among customers as evident in our customer interviews,” Murphy wrote in a research note.
In addition, Murphy is confident that Snowflake is reaching “an inflection point” in terms of generating free cash flow, and is benefitting from secular tailwinds and trends.
“The pent-up demand for its solutions has allowed Snowflake to exhibit a very rare level of growth at scale with best-in-class growth-plus-margin profile,” he wrote. “We expect Snowflake to continue to grow revenue at a rapid scale.”
Murphy’s upgrade came a few weeks after the analyst lowered his price target to $165 from $200 following Snowflake’s investor day. At the time, he said it was hard to see the stock outperforming significantly in the near future.
Snowflake now has 25 Buy ratings, seven Hold ratings, and one Sell, according to analysts surveyed by FactSet. The stock was rising 5.6% to $134.45 on Thursday.
Write to Sabrina Escobar at [email protected]
