Benzinga | Dec 2, 2021 09:59AM EST

Why Snowflake Shares Are Heating Up

Snowflake Inc (NYSE:SNOW) is trading higher Wednesday after the company announced better-than-expected fiscal third-quarter 2022 revenue results and issued guidance.

Snowflake reported a quarterly GAAP earnings loss of 53 cents per share. The company reported quarterly revenue of $334.44 million, which beat the estimate of $305.57 million.

Snowflake expects fiscal fourth-quarter product revenue of $345 million to $350 million.

Snowflake saw momentum accelerate in Q3, with product revenue growing 110% year-on-year to $312.5 million," said Frank Slootman, chairman and CEO of Snowflake. "Our vertical industry focus is an important evolution of our selling motion and Snowflake continues to see broad industry adoption."

Analyst Assessment: Multiple analyst firms raised price targets on the stock following Snowflake's financial results:

* Piper Sandler analyst Clarke Jeffries maintained Snowflake with an Overweight rating and raised the price target from $305 to $397.

* Barclays analyst Raimo Lenschow maintained Snowflake with an Equal-Weight rating and raised the price target from $360 to $393.

* Goldman Sachs analyst Kash Rangan maintained Snowflake with a Buy rating and raised the price target from $340 to $390.

* JMP Securities analyst Patrick Walravens maintained Snowflake with a Market Outperform rating and raised the price target from $350 to $385.

See Also: 10 Biggest Price Target Changes For Thursday

Snowflake is a data lake, warehousing and sharing company.

SNOW Price Action: Snowflake has traded as high as $429 and as low as $184.71 over a 52-week period.

The stock was up 13.40% at $352.95 at time of publication.

Photo: courtesy of Snowflake.