Bullish ratings upgrade signals strong start to 2025 News ad

Snowflake today

$162.36 -0.10 (-0.06%)

As of 3:58 pm ET

52 week range

$107.13

▼

$237.72

Target price

$187.69

Tech giant shares Snowflake Inc. NEW YORK: SNOW starts in 2025 relatively strong note after a turbulent year. The company, headquartered in Montana, is a leader in cloud data platforms. Bye 2024 has been a tough year for Snowflake, with shares down 55% in September and a 45% rise in January suggesting investor confidence is starting to return.

However, Snowflake still has a long way to go to regain its former glory and regain its position on Wall Street. full confidence. However, with several latest analyst updates Pointing to brighter days, investors have reason to be excited about Snowflake stock as it heads toward 2025.

Fundamental Characteristics of Snowflake

First, let’s look at Snowflake. recent fundamental results. With the exception of a rare miss in its May earnings report, Snowflake beat analysts’ expectations on key metrics in every other quarter of the year.

This That was the case in its most recent earnings report in November, which showed record earnings – always a good sign that things are moving in the right direction. However, one cannot ignore the fact that profitability has been elusive. Snowflake’s earnings declined in 2024 due to rising costs, leading many investors to question whether the company can achieve sustainable profitability any time soon.

However, it is worth noting that most of the negative consequences of these concerns may already be evident. be appreciated in shares. The stock has been trading at record lows recently, so this is a good result. in the February report could be a catalyst necessary to spark a comeback rally.

Snowflake gets news from bullish analysts

Adding to this reversal potential is bullish news. coming in from Wall Street. Snowflake has already received three this year, which is significant considering we’re not even halfway through the month.

In a note to clients in the first week of the year, Piper Sandler’s team reaffirmed its “Above Weight” rating, which soon followed a similar move by Wells Fargo. Then, just last fridayBarclays upgraded Snowflake to overweight from equal weight.

Target prices from everyone three upgrades range from $190 to $208, whichwhere the stock closed on Friday, indicate target growth potential of almost 30%. The optimism centers around what analysts call Snowflake’s strategic achievements and increased V management of the company for the whole year. For those Behind the scenes, these bullish forecasts underscore growing confidence that Snowflake’s turnaround has already begun.

Concerns about cost estimation and profitability

However, it must be admitted that it is still a shabby stock that has lost a lot of value in the past year while the broader market was trading at all-time highs. ITS rally for the last quarter definitely I’ll take a break right now while investors try To get an idea of ​​where the stocks are lead since the last Fed update.

It’s also worth noting that not all analysts are convinced of this. In December, Wedbush downgraded Snowflake from Strong Buy to Hold, citing concerns about valuation and profitability. However this important To keep in mind that Wedbush was one of the few bearish voices in a sea of ​​optimistic news last month. Other firms, including Loop Capital, Jefferies and Scotiabank, have rated the stock a Buy or equivalent for 2025.

Everything is ready for more success

With a relative strength index (RSI) of 52, the stock still boasts plenty of bullish momentum while still having plenty of room for growth if things go well. For context, RSI is a technical indicator that measures a stock’s recent trading history and displays outside reading between 0-100. Readings above 70 typically signal overbought conditions, while readings below 30 indicate oversold territory. With Snowflake’s RSI sitting comfortably in the middle, it sets the stage for further gains if buying activity picks up.

The combination of Snowflake’s solid fundamentals and strong analyst support suggests this could very well happen in the next month. With so much to be excited about, Snowflake could be one of the most exciting comeback stories of 2025.

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