There may very well be some large positive factors forward for Snowflake, JPMorgan mentioned Thursday. The agency upgraded the cloud information supplier’s shares to obese from impartial. JPMorgan additionally reiterates its value goal of $165 per share, which is 30% above Wednesday’s shut. “We are incrementally confident that Snowflake is reaching an inflection point in terms of material FCF generation, and we think that trendline has the potential to surprise positively, creating the initial framework toward FCF-based valuation support,” analyst Mark Murphy additionally mentioned within the be aware. Murphy famous that Snowflake shares are buying and selling at an enormous low cost from after they have been priced at greater than $400 in November. Their present value is barely increased than its IPO value of $120 from September 2020. JPMorgan’s improve comes after the agency carried out a survey of 142 chief data officers during which Snowflake ranked No. 1 in “installed base spending intentions and disproportionately #1 among emerging companies whose vision most impressed respondents.” “Snowflake is benefiting from demonstrable secular tailwinds illustrated quantitatively and qualitatively in our CIO Survey,” he added, whereas additionally exhibiting optimistic money movement for FY23, “setting up an attractive risk/reward dynamic.” Murphy mentioned Snowflake is in “excellent standing” amongst clients, based mostly on buyer interviews carried out by the financial institution. He additionally highlighted the long-term imaginative and prescient of the corporate, because it was laid out at a latest Investor Day. That “cements its position as a critical emerging platform layer of the enterprise software stack,” Murphy mentioned. —CNBC’s Michael Bloom contributed reporting.