Snowflake Rated Buy at Deutsche Bank, Piper Sandler on Growth Prospects

Snowflake  (SNOW) – Get Report Monday received positive recommendations from analysts at Deutsche Bank and Piper Sandler, who are impressed with the cloud service company’s growth prospects.

Snowflake shares recently traded at $245.51, up 3.15%, but have slipped 4% since the company’s initial public offering in September.

Deutsche Bank analyst Patrick Colville initiated coverage with a buy rating and a $305 price target.

“Data is the coal of the digital economy,” he wrote in a commentary. Production of the commodity “spurned the Industrial Revolution,” he said.

Now, “we find that capturing and analyzing data is becoming paramount to business success in the 21st century,” Colville said. “We see a world where the use of data is democratizing, many more roles and functions are becoming data consumers. … Our estimates call for data warehouse (analytical processing) spending to grow to $45.2bn in 2024, a 13% CAGR from 2019.”

Brent

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Twitter Upgraded at Deutsche on U.S. National-Ad Resurgence

Twitter  (TWTR) – Get Report is well positioned to “benefit from a big event landscape in 2021,” according to a Deutsche Bank analyst, who upgraded the microblogging platform to buy from hold.

Shares of the San Francisco company at last check were climbing 4.2% to $47.85.

Analyst Lloyd Walmsley set a share price target of $56, up from $36.

“Twitter is well positioned to benefit from a big event landscape in 2021, expansion into more performance advertising on the back of its ad server rebuild and new [mobile application promotion] product, and an eventual high-margin subscription product,” the analyst said in a note to clients.

Twitter user growth has benefited from the coronavirus pandemic, Walmsley said. But its focus on brand advertising – the weakest segment of the ad market – has resulted in poor revenue performance, holding back the shares from an otherwise good story in 2021. 

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