Raymond James Assumes Coverage of Snowflake (SNOW) Stock with an Outperform Rating

Snowflake Inc. (NYSE:SNOW) is one of the Best Stocks to Invest in for the Next 3 Years. On December 15, Raymond James assumed coverage of the company’s stock with an “Outperform” rating and with a price objective of $250, down from the prior target of $274. Analyst Adam Tindle believes that the company is at an inflection point, evolving from a cloud data warehouse into the broader data and AI platform, while long-term growth and margin durability remain under scrutiny.

Raymond James Assumes Coverage of Snowflake (SNOW) Stock with an Outperform Rating

Snowflake Inc. (NYSE:SNOW) has been pushing to unify structured, semi-structured, unstructured, and transactional workloads. It is also enabling application development via Snowpark and container services. Since Snowflake Inc. (NYSE:SNOW) runs on the usage-based model, its growth is sensitive to customer optimization cycles, added the analyst. While the company has invested in automation and cost-governance tools, there are questions about visibility into durable usage growth.

In a different update, Snowflake Inc. (NYSE:SNOW) announced a significant milestone in the strategic collaboration with AWS, doubling the transaction growth in AWS Marketplace YoY to surpass $2 billion in sales in a calendar year. The seamless integration between the company’s fully managed data and AI platform and AWS services continues to accelerate growth and empower customers to transform businesses in the age of AI.

Snowflake Inc. (NYSE:SNOW) offers a cloud-based data platform for organizations.

While we acknowledge the potential of SNOW to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SNOW and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.