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