Wall Street Analysts are Downgrading These 5 Stocks

1. Snowflake Inc. (NYSE:SNOW)

Number of Hedge Fund Holders: 81

Shares of Snowflake Inc. (NYSE:SNOW) slipped nearly two percent on Tuesday, August 16, 2022, after UBS downgraded the Montana-based tech company from “Buy” to “Neutral,” citing its high valuation.

UBS analyst Karl Keirstead referred to his recent conversation with customers, saying nearly half of them anticipate a drop in their budget for data analytics software. Nevertheless, most Wall Street analysts are still bullish on Snowflake Inc. (NYSE:SNOW), maintaining a “Buy” rating for the stock.

Last month, Snowflake Inc. (NYSE:SNOW) also appeared in the second-quarter 2022 investor letter of investment management firm ClearBridge Investments. Here’s what the firm said:

“Snowflake operates a cloud-based data platform for small and medium-sized businesses and enterprise customers. The company is a key beneficiary of software spending moving to the cloud, as well as the increasing strategic importance of data. With the potential to address the large and growing market for data cloud, a roughly $250 billion plus opportunity by 2026, we see a long runway for growth ahead. Although the company is already profitable, we believe Snowflake still has significant room for free cash flow margin expansion.”

You can also take a peek at 10 Best Stocks to Buy According to DE Shaw and Jim Cramer Recommends These 10 Stocks For Recession.

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