Snowflake (NYSE:SNOW) was started with a Buy rating and $200 price target by DA Davidson analysts on Friday.
The investment firm described SNOW as having long been the industry-leading cloud data warehouse provider that has expanded into products that capture additional workloads, particularly in the machine learning space.
"Even after cloud optimization efforts that plagued software companies this year, we view Snowflake in an advantageous position, as they maintain best-in-class growth rates and are positioned well as a cloud data company to benefit from increasing demand for artificial intelligence," wrote the analysts.
In addition, they stated that the firm "views Snowflake as the best-in-class cloud data warehouse provider that has rightfully deserved a hefty premium to its peers as it has exhibited enviable growth rates."
Furthermore, the analysts said they interpret Snowflake's expansion further into the cloud data market as a "considerable opportunity to capture additional workloads," while they are also confident in the AI tailwinds the company is set to capitalize on.