What happened
Shares of Snowflake (SNOW 2.53%), a cloud-based data platform company, were rising this morning after an analyst slapped a buy rating on the company's stock. The upgrade comes after Snowflake held analyst day yesterday.
The tech stock rose by as much as 6.1% today and was up by 3.2% at 10:46 a.m. ET.
So what
Canaccord analyst David Hynes upgraded Snowflake to a buy rating today, up from his previous hold rating for the stock. Hynes maintained his price target of $185 for the stock.
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Hynes wrote in an investor note today that "things aren't perfect" for the company, "but demand remains relatively healthy, and Snowflake is investing into the opportunity it sees ahead."
The analyst is bullish on some of the company's upcoming products, including native Python support and a new framework for data scientists, both of which could bring "increased consumption and ultimately better monetization," according to Hynes.
Investors may have also latched on to some positive comments by other analysts today, including from Evercore ISI analyst Kirk Materne, who wrote that "we continue to see SNOW as a unique story for those willing to take a 6-9 month view."
Now what
Snowflake's share price has been battered over the past year -- the stock is down 51% over the 12-month period -- as investors have fled high-growth tech stocks in response to rising inflation and economic uncertainty.
But today's upgrade from Canaccord helped convince some investors that Snowflake could still make a good long-term investment -- if they can look past some of the current market volatility.
