There could be some big gains ahead for Snowflake, JPMorgan said Thursday. The firm upgraded the cloud data provider’s shares from neutral to overweight. JPMorgan also reiterated its price target of $165 per share, which is 30% higher than Wednesday’s close. Analyst Mark Murphy also said, “We believe the snowflake material is approaching an inflection point in terms of FCF generation, and we think the trendline has the potential to surprise positively, providing support for FCF-based valuations.” And the initial framework is being prepared.” Comment. Murphy noted that Snowflake’s shares are trading at a huge discount to their price of more than $400 in November. Their current price is slightly higher than the $120 IPO price from September 2020. JPMorgan’s upgrade comes after the firm’s survey of 142 chief information officers found Snowflake ranked “number 1 in established base spending intentions and disproportionately #1 among emerging companies. Those whose vision impressed respondents the most.” ” “Snowflake is benefiting from the demonstrative secular tailwind we found quantitatively and qualitatively in our CIO survey,” he said, demonstrating positive cash flow for FY23, “establishing an attractive risk/reward dynamic.” ” Murphy said Snowflake is in an “excellent position” among customers, based on customer interviews conducted by the bank. He also highlighted the company’s long-term outlook, as laid out at a recent Investor Day. It “consolidates its position as an important emerging platform layer of the enterprise software stack,” Murphy said. —CNBC’s Michael Bloom contributed reporting.
