Snowflake Stock Gets an Upgrade. It’s a Favorite Among CIOs, Analyst Says.

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Shares of

Snowflake

have been spiking Thursday after the inventory acquired an improve to Chubby at J.P. Morgan.

Analyst Mark Murphy raised his score for

Snowflake

(ticker:

SNOW

) to Chubby from Impartial and maintained a $165 value goal.

Murphy’s improve was primarily based on the outcomes of J.P. Morgan’s annual chief data officer survey, by which the corporate surged to “elite territory.”

The survey polled 142 CIOs that management greater than $100 billion of IT spending. Snowflake ranked No. 1 in put in base spending intentions, beating out

Microsoft

(

MSFT

), Alphabet-owned

Google

(

GOOGL

) Cloud Platform, and

CrowdStrike Holdings

(

CRWD

). Snowflake additionally ranked No. 1 amongst rising corporations whose imaginative and prescient most impressed respondents, Murphy wrote.

“Snowflake enjoys wonderful standing amongst clients as evident in our buyer interviews,” Murphy wrote in a analysis observe.

As well as, Murphy is assured that Snowflake is reaching “an inflection level” when it comes to producing free money move, and is benefitting from secular tailwinds and tendencies.

“The pent-up demand for its options has allowed Snowflake to exhibit a really uncommon stage of progress at scale with best-in-class growth-plus-margin profile,” he wrote. “We count on Snowflake to proceed to develop income at a fast scale.”

Murphy’s improve got here a number of weeks after the analyst lowered his value goal to $165 from $200 following Snowflake’s investor day. On the time, he stated it was exhausting to see the inventory outperforming considerably within the close to future.

Snowflake now has 25 Purchase scores, seven Maintain scores, and one Promote, based on analysts surveyed by FactSet. The inventory was rising 5.6% to $134.45 on Thursday.

Write to Sabrina Escobar at sabrina.escobar@barrons.com