Cloud-based data software provider Snowflake (NYSE:SNOW) got some good news on Friday as Needham analyst Mike Cikos started his coverage of the company with a buy rating and $240-a-share price target.
And then the stock market opened. And with that, Snowflake's (SNOW) shares fell as much as 6% as stocks in general hit the skids due to more negative sentiment about the economy thanks to a negative report and outlook from FedEx (FDX).
Still, Cikos was upbeat on Snowflake (SNOW) and that the company stands to benefit more from its cloud-native data platform "which has massive scale thanks to cloud's latest innovations [and] a large growing opportunity" if a total addressable market expected to reach $248B in 2026.
"Data is the new oil," Cikos said. "[And] the more critical asset to organizations today." Cikos added that Snowflake's products appeal to customers because of their "ease of use" and have helped the company get a jump on its competitors in a relatively young market.
Wall Street analysts currently have a consensus buy rating on Snowflake's (SNOW) stock, while Seeking Alpha authors view Snowflake (SNOW) worth of a hold rating. Seeking Alpha's quant system, which historically outperforms the stock market, also gives Snowflake (SNOW) shares a rating of hold.