Snowflake’s (SNOW) focus and investment in artificial intelligence addresses concerns about its product roadmap, Macquarie said in a note Thursday.
Chief Executive Officer Frank Slootman’s departure was shocking, compounded by lower-than-expected fiscal 2025 guidance, the investment firm said. But, the firm welcomed the appointment of Sridhar Ramaswamy, senior vice president of AI, to the top job.
“Nevertheless, we believe Snowflake’s product and sales organizations are also world-class and that its drivers are durable even without Mr. Slootman in charge,” the investment firm said.
Macquarie upgraded Snowflake to outperform from neutral and lifted the price target to $205 from $182.
Snowflake shares slumped nearly 19% in recent trading.