Argus starts Snowflake at Hold pending renewed traction in metrics and margins

As previously reported, Argus analyst Joseph Bonner initiated coverage of Snowflake with a Hold rating. The company is in a building phase as it invests in new product enhancements, particularly around AI/machine learning which are not generating near-term revenue, even though they may begin to payoff sometime in the future, the analyst tells investors in a research note. Argus adds that while product revenue growth is Snowflake’s key performance indicator, the firm also would like to see renewed traction in the company’s customer metrics and margins before considering an upgrade.