5 Snowflake Analysts React To Q1 Earnings As Stock Thaws

Snowflake Inc SNOW reported a first-quarter loss of 53 cents per share Wednesday on revenues of $422.4 million. Here's what the Street has to say. 

Morgan Stanley On Snowflake: Analyst Keith Weiss maintained an Overweight rating on Snowflake while reducing the price target from $322 to $295.

“While Q1 well illustrated the potential for near-term volatility in consumption models, Snowflake continues to build an impressive long-term FCF engine with 98% YoY growth in >$1M customers, rapid expansion within the base with NRR at 174% and a focus on rapidly expanding FCF margins,” Weiss wrote in a note.

JMP Securities On Snowflake: Analyst Patrick Walravens reiterated a Market Outperform rating while cutting the price target from $385 to $180.

Citing the company’s better-than-expected quarterly results, the analyst raised the fiscal 2023 non-earnings estimate from 7 cents per share to 13 cents per share. “We would use this pullback as a buying opportunity,” he added.

Mizuho Securities On Snowflake: Analyst Gregg Moskowitz maintained a Buy rating while lowering the price target from $225 to $200.

“Our checks on SNOW were more mixed this quarter, and thus we had anticipated more moderate revenue upside this quarter. Even so, F1Q revenue fell shy of our expectations, as some customers consumed less than planned amid changing economic conditions,” Moskowitz said in a note.

The analyst added that he expects more pressure on the shares in the near term and material upside in the longer term.

Rosenblatt Securities On Snowflake: Analyst Blair Abernethy maintained a Buy rating and $255 price target. 

“Snowflake reported Q1 Product revenue growth of 84%, ~2% above our expectations, with slightly lower-than-expected operating expenses,” Abernethy said.

“We expect Snowflake to continue its rapid growth at scale, aided by its verticalization strategy, and drive improving margins over the next few years,” he added.

Piper Sandler On Snowflake: Analyst Brent Bracelin reiterated an Overweight rating for the company while reducing the price target from $300 to $165.

Although Snowflake reported solid results, “management commentary around slower consumption at consumer-facing clouds in April hit a nerve with investors concerned that macro headwinds could further temper growth given Snowflake's usage-based revenue model,” Bracelin said in a note.

“We are lowering F24 top-line estimates by $255M assuming growth moderates to 45% from our prior 58% estimate on lower consumption against a backdrop of increasing global risks,” the analyst further mentioned.

SNOW Price Action: Shares of Snowflake were down 3.93% at $127.65 Thursday afternoon.