Snowflake (NYSE:SNOW) stock is rising higher on Monday after Morgan Stanley analyst Keith Weiss weighed in on the shares with a new price prediction.
The Morgan Stanley analyst decided a new price target was in order for SNOW stock today. This saw him increase the firm’s price target for SNOW stock from $344 per share to $390 per share. It’s worth noting that this is higher than the analyst consensus price target of $369.12 per share.
Weiss didn’t stop with just a new price prediction for SNOW stock. The analyst also upgraded the shares from his previous equal weight rating to a new overweight rating. The consensus rating for SNOW stock is buy based on 18 buy ratings and six hold ratings.
So why is this Morgan Stanley analyst taking such a bullish stance on SNOW stock? Let’s see what he has to say about the cloud-computing company in a statement obtained by Seeking Alpha.
“Given a 172% net-dollar expansion rate, our current base case CY22 revenue growth forecast of 77% YoY appears conservative – our bull case suggesting 91% growth appears increasingly probable and suggests 18.5% upside from consensus estimates. Further, growth from expansion of existing customers (as measured in the DBNER) should carry robust incremental margins and drive a faster ramp in [free cash flow].”
SNOW stock is seeing heavy trading today with the new price prediction. As of this writing, more than 3.4 million shares of the stock have changed hands. That’s already about to pass the company’s daily average trading volume of about 3.7 million shares.
SNOW stock is up 7.8% as of Monday morning.
Investors searching for more stock market news are in the right place!
We’ve got all the latest stock news that traders need to know about for Monday. That includes what’s happening with shares of Alibaba (NYSE:BABA) and Peloton (NASDAQ:PTON) stock, as well as this morning’s biggest pre-market stock movers. You can find all of that at the following links!
More Monday Stock Market News
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- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Monday
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.