Snowflake Inc (NYSE: SNOW) has had a fantastic run in the back half of 2021, with the stock up more than 100% since mid-May. But Credit Suisse is convinced it’s not done pleasing the shareholders yet.
Snowflake initiated with an ‘outperform’ rating
In a note on Tuesday, Credit Suisse’s Phil Winslow assumed coverage of the stock with an “outperform” rating and a price target of $455 that represents a nearly 15% upside from here. The news comes only hours after America’s largest public pension took a position in Snowflake.
In 2011, Marc Andreessen said, “Software is eating the world”. But that was ten years ago. Now, as per Winslow, “Software is life”.
Much of the debate about the software industry, publicly traded or privately held, is still around valuation, as opposed to the long-duration value creation potential of the best companies.
Josh Brown dubs Snowflake a ‘symbolic stock’
On CNBC’s “Halftime Report”, Ritholtz Wealth Management’s Josh Brown said Snowflake was a “symbolic stock” that everyone from venture capitalists to hedge funds to even Warren Buffet was buying at present.
It’s an important stock for the market because it’s emblematic of the era that we’re in. It’s demonstrating that incredible SaaS Cloud business growth. I think a lot of people look to it as a proxy for that growth in any price trade, and it happens to be working really well right now.
Brown quoted the massive sequential growth that Snowflake continues to report every quarter as another reason why he likes the stock. In its latest reported quarter, the cloud computing-based data warehousing company said its product revenue more than doubled on a year-over-year basis.
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