Snowflake Inc. Surpasses Analyst Price Target, What’s Next?
Recently, Snowflake Inc. (Symbol: SNOW) shares have surged, reaching $203.11, which exceeds the average 12-month target price of $197.30 set by analysts. Analysts face a decision when a stock meets their target: they can either downgrade based on valuation or adjust their target price upwards. Their response may also reflect the company’s underlying business performance, prompting potential reassessments of growth expectations.
Analyst Targets and Reactions
In total, there are 40 analysts contributing to Snowflake’s average target price, but it’s important to note that averages can obscure individual perspectives. Some analysts have target prices significantly below the average; for instance, one has set a forecast at $115.00, while another sees potential up to $235.00. The standard deviation among these targets is $25.704.
The rationale for examining the average price target is to benefit from a “wisdom of crowds” approach, synthesizing diverse analyst opinions rather than hinging on one expert’s judgment. With the SNOW price now exceeding the average target of $197.30, investors must evaluate whether this is just a step towards even higher targets or if the valuation has become too stretched, warranting a reassessment of their positions.
Current Analyst Ratings
| Recent SNOW Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
| Strong buy ratings: | 31 | 31 | 31 | 31 |
| Buy ratings: | 3 | 3 | 3 | 3 |
| Hold ratings: | 8 | 8 | 7 | 7 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 1 | 1 | 1 | 1 |
| Average rating: | 1.53 | 1.53 | 1.5 | 1.5 |
The average rating uses a scale from 1 to 5, where 1 represents a Strong Buy and 5 indicates a Strong Sell. The data in this analysis is provided by Zacks Investment Research via Quandl.com.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
