BofA analysts initiated shares of Snowflake (NYSE:SNOW) at Neutral and MongoDB (NASDAQ:MDB) with a Buy rating in separate notes Thursday.
They assigned SNOW a price target of $195 per share, telling investors that they believe the company is well positioned to capture further share of the $132 billion data management market given its status as a first mover in the cloud, interoperability with the major public clouds, and its platform which is capable of running multiple workloads.
"However, Snowflake’s pay-as-you-go/consumption pricing model is facing headwinds that, while improving, are still weighing on growth in the company’s core data warehouse business," they wrote.
Meanwhile, the analysts assigned MDB a $450 price target, stating it is a "best-of-breed next-generation database vendor that is well-positioned in the rapidly growing NoSQL unstructured database market" to capture share from market leaders such as Amazon (NASDAQ:AMZN) (Dynamo DB) and Microsoft (NASDAQ:MSFT) (MSSQL/Cosmos DB).
The analysts also noted that AI and data workloads represent growth opportunities for the company.