What happened

Shares of Snowflake (SNOW 1.01%) popped 8.3% Friday, following bullish analyst remarks. 

So what

Evercore analyst Kirk Materne placed an outperform rating on Snowflake's stock. He sees the data warehousing specialist's shares climbing to $311, or more than 32% higher than their current price of $235.

A rising digital bar chart.

Snowflake's shareholders could be in for handsome gains, according to Evercore's analysts. Image source: Getty Images.

Materne highlighted Snowflake's massive addressable market, which management pegs at roughly $80 billion. "We believe there are few software firms over the last decade that have as large a growth opportunity as Snowflake," he said. 

Moreover, Materne argued that although its shares may appear expensive based on short-term metrics, Snowflake offers investors an attractive risk-to-reward profile based on its long-term expansion potential. 

Now what 

With its shares trading for roughly 60 times its projected sales in the year ahead, Snowflake certainly is not cheap. But if you believe its cloud-based data management opportunity is as large as management says it is, it could be worth it to place Snowflake on your watch list. If the recent sell-off in premium-priced growth stocks continues, a chance to buy this cloud data leader at a better price could present itself in the coming weeks.