Bank of America is growing bullish on Snowflake one week before it releases second-quarter earnings results. The Wall Street investment bank upgraded its investment opinion on the maker of cloud data warehousing software to buy from neutral, and raised its price target to $240 from $220, implying more than 24% upside from Tuesday’s close. The upgrade comes ahead of the company’s results for the quarter that ended July 31, due to be released post-market Aug. 27. BofA analyst Brad Sills expects “solid” financials, reinforcing a multi-year cycle of strong growth. “While we believe that Q2 earnings will be a catalyst for the stock given multiple positive data points outlined below, our call is for outperformance over the long term given incremental traction with products addressing a [significantly] larger addressable AI market for software of $155bn,” he wrote on Wednesday. Sills also believes that recent web data signals upside for Snowflake’s product revenue, citing second-quarter SimilarWeb total page views rising 42% year-over-ear. He estimates that product revenue will come in 2.5% better than Snowflake’s guidance. “Positive Cloud Views data supports our thesis that Snowflake is at an inflection point for improving demand trends,” the analyst wrote. Sills’ upgrade tracks with the Street’s bullishness. Only nine analysts rate Snowcloud a hold while 41 carry a strong buy or buy rating, according to LSEG. While the stock has come under pressure in the past month, falling more than 11%, the Bozeman, Montana-based company is still higher by 46% over the past year while the S & P 500 has risen less than 15%. The stock climbed 2.5% premarket Wednesday on the heels of the BofA upgrade.
