Canaccord Genuity upgraded the equity to “buy” from “hold”
Snowflake Inc (NYSE:SNOW) is up 5.4% to trade at $120.07 at last check, after the cloud computing concern received an upgrade from Canaccord Genuity to “buy” from “hold.” The analyst in coverage said SNOW is cheap following the recent selloff, and that the business may be able to sustain sustain growth rates of 35% to 40%. Meanwhile, J.P. Morgan Securities cut the security’s price target to $165 from $200 earlier today.
Analysts were mostly optimistic towards Snowflake stock coming into today, with 17 of 25 in question boating a “buy” or better rating, while eight said “hold” or worse. What’s more, the 12-month consensus target price of $198.91 is already a 78.7% premium to current levels.
Options bulls are chiming in as well. In just the first half hour of trading, 4,470 calls have crossed the tape, which is double the intraday average, as opposed to 1,103 puts. Most popular is the June 130 call, followed by the 120 call in that same monthly series.
The equity was struggling on the charts prior to this pop, just yesterday falling to an all-time low of $110.33. While the $110 level has served as a floor for the shares since late May, the 20-day moving average has been guiding the stock for the last couple of months. Year-to-date, SNOW is down 66.4%.