CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our price target by $8 to $208, using an EV/Sales ratio of 21x our FY 25 (Jan.) sales view, above peers due to SNOW’s growth history but below its 3-year average (~31x) as growth continues decelerating despite AI excitement. We lower our FY 25 sales view to $3.47B from $3.63B and initiate a FY 26 view at $4.55B. SNOW posts Jan-Q sales of $775M (+32% Y/Y) and EPS of $0.35 (+150%), both above consensus, while guiding for softer-than-expected sales in FY 25. We think the guide is conservative, and we see upside from new products like Document AI, with support from its $5.2B backlog (+$1.5B Q/Q) and still-high NRR (131%). In a surprise announcement, Sridhar Ramaswamy (previously SVP of AI) has assumed the CEO role from Frank Slootman, which is likely contributing to a sell-off given investors’ positive views on Slootman. The move doesn’t materially alter our views on SNOW and has created a buying opportunity, in our view. We lower our FY 25 EPS view by $0.03 to $1.10 and initiate a FY 26 view at $1.64.