Snowflake (NYSE: SNOW) shares are gaining momentum in the pre-market trading session on June 23, popping by over 5%. It would seem that the main reason for this is that the investment banking firm JPMorgan (NYSE: JPM) has upgraded the company to overweight status.
Furthermore, today’s upgrade is the second one the company received during this month, as on June 15, Canaccord Genuity upgraded the data warehouse company to buy, with a price target of $185.
Similarly, the company was one of the most discussed companies among the Reddit users at the end of May who were agreeing with analysts that the stock might surge.
SNOW chart and analysis
Meanwhile, shares of the company are down over 60% year-to-date (YTD), trading well below its IPO price of $245 a share. In the last trading session, shares managed to close slightly above the 20-day Simple Moving Average (SMA), but no significant volume increases have been noted.
In June, the shares have been trading in a range between $110 and $140, trying to create new support and resistance lines. Notably, there is reduced volatility while prices have been consolidating in the most recent period. Consequently, there appears to be very little resistance above the current price.
On the other hand, analysts rate the shares a moderate buy, predicting that the average next 12 months price will reach $194.50, 52.72% higher than the current trading price of $127.36.
Snowflake is a play on big data and the cloud, an area of the market that is not loved very much this year. Most big tech names, which also have a cloud and data component, lost a lot of value in 2022, and SNOW is no different.
With a difficult macroeconomic background and possibly more rate hikes coming from the Federal Reserve (Fed), investors could benefit from sitting on the sideline a bit more to see in which direction the shares will move in the next couple of weeks before deciding to invest.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
Source: https://finbold.com/snowflake-shares-up-5-premarket-after-jpmorgan-raises-snow-stock-to-overweight/