On Wednesday, Rosenblatt Securities sustained its positive stance on Snowflake Inc . (NYSE:SNOW), reiterating a Buy rating and a $180.00 price target for the cloud-based data-warehousing company. The endorsement comes after Snowflake completed a significant $2.3 billion convertible debt offering, which also saw the full exercise of over-allotment options.
The firm has incorporated the details of the debt issue into its financial estimates and introduced projections for the fiscal year 2027, alongside other minor adjustments to its model. Despite these changes, the firm's 12-month price target for Snowflake remains unchanged at $180.
Snowflake's recent completion of the convertible debt issue marks a notable financial milestone for the company. The firm's decision to maintain its Buy rating indicates confidence in Snowflake's financial strategy and future performance.
The analyst's statement highlights the incorporation of the new debt into their estimates and the introduction of a forecast for FY27. These updates to Rosenblatt's financial model reflect the firm's ongoing analysis and expectations for Snowflake's long-term growth.
Rosenblatt's unchanged price target suggests that, in their view, Snowflake's current share price represents an attractive entry point for investors. The firm's analysis indicates a positive outlook for the stock over the next 12 months.
In other recent news, Snowflake Inc. has seen significant financial developments and analyst attention. The data warehousing company successfully issued $2.3 billion in convertible debt, a move that Rosenblatt Securities, Deutsche Bank, and Scotiabank all view as a positive step towards increased capital and flexibility.
Furthermore, Snowflake reported a 30% year-over-year increase in product revenue, reaching $829 million for its second quarter of fiscal year 2025. This strong performance led to an increased full-year product revenue outlook.
Analysts from Rosenblatt, Deutsche Bank, and Morgan Stanley have maintained their respective Buy and Equalweight ratings on Snowflake. While Rosenblatt and Deutsche Bank keep their price targets steady at $180, Scotiabank reaffirmed its Sector Outperform rating with a price target of $165. The analysts' confidence in Snowflake's financial strategy and value proposition underscores the potential for steady share performance in the near term.
The recent convertible debt offering and positive revenue growth are part of Snowflake's ongoing commitment to enhanced execution and quicker product innovation. The company plans to continue its aggressive share repurchase strategy while keeping options open for potential merger and acquisition opportunities.
InvestingPro Insights
To complement Rosenblatt Securities' bullish outlook on Snowflake Inc. (NYSE:SNOW), InvestingPro data provides additional context for investors. Despite the company's recent $2.3 billion convertible debt offering, an InvestingPro Tip highlights that Snowflake still holds more cash than debt on its balance sheet, indicating a strong financial position.
However, it's worth noting that Snowflake is currently trading near its 52-week low, with a significant 29.43% price decline over the past six months. This aligns with Rosenblatt's view that the current share price might present an attractive entry point for investors.
While Snowflake boasts impressive revenue growth of 31.21% over the last twelve months, reaching $3.21 billion, the company is not yet profitable. An InvestingPro Tip reveals that analysts predict profitability this year, which could be a pivotal turning point for the company's financial performance.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Snowflake, providing deeper insights into the company's financial health and market position.
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