Bullish upgrade signals strong start to 2025

Shares of tech giants Snowflake Inc NYSE: Snow Starting in 2025 on A Relatively strong note After a turbulent year. The company, headquartered in Montana, is a leader in Cloud data platform. While 2024 was a challenging year for Snowflake, with shares plunging 55% in September, followed by a 45% rally in January suggesting that investor confidence is starting to return.

That said, Snowflake still has a long road to regain its former glory and win back Wall Street. complete Trust though, with many Latest analyst updates Pointing to brighter days ahead, investors have reasons to be excited about Snowflake stocks as we head into 2025.

Snowflake’s basic performance

To begin with, let’s take a look at Snowflake Recent basic performance. Aside from a rare miss in the May earnings report, Snowflake beat analyst expectations on headline numbers every other quarter of the year.

This That was the case in its most recent earnings report in November, which saw a record revenue print — always a good sign that things are moving in the right direction. However, there is no need to ignore the fact that the profits have been modest. Snowflake’s margins were squeezed in 2024 as costs rose, leading many investors to question whether the company could hit consistent profitability anytime soon.

Still, it’s important to point out that these concerns can already cause a lot of damage The price should be in stock. Shares recently traded at all-time lows, so a solid performance In the February report Can be a catalyst is required To spark a comeback rally.

Snowflake Receives Bullish Analyst Updates

Adding to the possibility of this change are bullish updates come in From Wall Street. Snowflake has already received three this year, which is no small feat, considering we’re not even halfway through the month.

In a note to clients in the first week of the year, Piper Sandler’s team reiterated its overweight rating, which was soon followed By a similar move to Wells Fargo. then, Just last FridayBarclays upgraded Avalanche from equal weight to overweight.

Price targets the most Three Upgrades range from $190 to $208, whichFrom where the stock closed on Friday, A target of about 30% pointed upwards. Optimism centered around what analyst Snowflake described as strategic progress and an uptick. in the Full year guidance of the company. For them On occasion, these bullish calls highlight a growing belief that the snowflake transition has already begun.

Concerns over valuation and profitability loom

It must be admitted, however, that That it’s still a beaten-up stock that lost a lot of value last year while the broader market was trading at all-time highs. IThere is a rally of ts from last quarter Definitely Take a breather at this time as investors try to Where to get a sense of equity are leading After the latest update of Fed.

It’s also worth noting that not all analysts are convinced. In December Wedbush downgraded Avalanche from Strong Buy to Hold, citing concerns about valuation and profitability. However, it is important to Keep in mind That Wedbush was one of the few bearish voices A sea of ​​fast updates last month Other firms, including Loop Capital, Jefferies, and Scotiabank, have given 2025 a buy or equivalent rating to the stock.

The stage is set for further gains

With a Relative Strength Index (RSI) of 52, the stock can still boast plenty of upside while at the same time having a ton of room to run higher if things take off. For reference, RSI is a technical indicator that measures a stock’s recent trading history and momentum outside Readings between 0-100. Readings above 70 usually indicate overbought conditions, while readings below 30 indicate oversold territory. With Snowflake’s RSI comfortably in the middle, the stage is set for further gains if buying activity accelerates.

Snowflake’s combination of solid fundamentals and strong analyst support suggests that it could do very well in the month ahead. With plenty of reasons to be excited, Snowflake could be one of the most impressive comeback stories of 2025.

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