Snowflake Lower as Jefferies Initiates at Hold on Valuation

Snowflake  (SNOW) – Get Report shares fell after Jefferies analyst Brent Thill initiated coverage of the cloud-services company with a hold rating and $250 share-price target.

He likes the company but not its valuation — about 51 times his 2022 revenue estimate and 21 times his best-case 2023 estimate. 

The San Mateo, Calif., company’s stock stands “ahead of its fundamentals,” Thill wrote in a commentary, according to Bloomberg.

Snowflake recently traded at $244.80, down 2.5%. It has more than doubled from its Sept. 15 IPO price of $120.

In addition to his concern about valuation, Thill noted that Snowflake faces intense competition in its field.

As for his overall bullishness, Thill likes Snowflake’s management team. It has a “proven track record of building from a base (today an $81 billion addressable market) to much larger total addressable markets over time.”

Last week, Summit Insights analyst Srini Nandury began

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