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It’s time to jump in and buy Snowflake after the cloud computing company’s 59% decline this year, according to Rosenblatt Securities. Analyst Blair Abernathy upgraded Snowflake’s shares to buy from neutral, saying this week ahead of the company’s quarterly earnings report that the stock is cheap at current valuations — even as the analyst lowered its price target. Even after. ,[Due] In light of the recent significant decline in Snowflake’s stock price, we are upgrading our rating on SNOW to a Buy (Neutral) as our revised target price reflects an 84% return from current levels,” Abernathy said in Monday’s note. Rosenblatt Securities cut its 12-month target price on Snowflake from $325 to $255, citing rising interest rates and ongoing concerns from the Russia-Ukraine conflict. However, the new target is still around $84 from Monday’s closing price. %. Snowflake will post first-quarter earnings reports that are either in-line or exceed expectations, Abernathy said. The analyst believes the company is benefiting from strong tech spending, and noted That Snowflake has a “healthy” net revenue retention rate of 160%.” The momentum given the ongoing enterprise digital transformation, strong Q1 growth reported by major cloud service providers (CSPs), and Snowflake’s healthy +160% net revenue retention (NRR) rate, we expect Snowflake to meet or marginally exceed our Q1 Product revenue growth estimated at 81% yoy,” Abernathy wrote. Snowflake shares were down in Tuesday’s premarket trading. —CNBC’s Michael Bloom
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Credit: www.cnbc.com /
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