Snowflake (NYSE:SNOW) stock is piling up Monday as one analyst put out a bullish rating for the cloud computing company.
Wolfe Research analyst Alex Zukin is behind that rise today as the analyst initiated coverage of SNOW stock. This had him giving it an “overweight” rating. For the record, the consensus rating for the stock is “buy.” This comes from 18 “buy,” eight “hold” and two “sell” ratings.
To go along with that bull rating is an incredibly strong $250 price target for SNOW stock. That represents a potential 44% upside for the stock compared to its closing price on Friday. For comparison, the consensus price target for SNOW shares is $307.42.
So what has Zukin believing so strongly in SNOW stock today? He believes investors don’t understand the strength of its ability to transform cloud data management into a platform as a service. Let’s see what else the analyst had to say bout that in a research note obtained by CNBC.
“We see this as a potential game changer as it converts data management in the cloud into a PaaS, enabling businesses to build applications natively on top of the platform, driving not just an ecosystem but a network effect that will propel the company to the next level of growth.”
Investors are reacting to the new SNOW stock rating today with a decent amount of trading. As of this writing, some 4 million shares are on the move. That’s closing in on the stock’s daily average trading volume of 5.9 million shares.
SNOW stock is up 7.5% as of Monday afternoon.
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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.
