SNOW - 1 Analyst Cut Snowflake's Price Target by 24%: Here's Why They're Right
2024-03-02 07:35:00 ET
After the market closed Wednesday, Snowflake (NYSE: SNOW) published results for the fourth quarter of fiscal 2024 (ended Jan. 31). While the company posted sales and earnings results that came in ahead of Wall Street's expectations, investors weren't happy.
Not only did Snowflake's forward guidance raise concerns, but the data-warehousing specialist announced that CEO Frank Slootman had retired and been replaced in the role by Sridhar Ramaswamy -- the company's former Senior Vice President of AI. Analysts responded to the performance outlook and management shakeup with a flurry of ratings downgrades and price-target cuts.
Following the earnings release and conference call, Morgan Stanley downgraded its rating on Snowflake from "overweight" to "equal weight." The firm also lowered its one-year price target on the stock from $230 per share to $175 per share -- representing a 24% cut from its previous forecast.
For further details see:
1 Analyst Cut Snowflake's Price Target by 24%: Here's Why They're Right