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3 New Stocks to Consider

Morningstar recently added a few companies to its coverage list. Here's what our analysts think of the newcomers.

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Morningstar analysts recently brought a few new stocks under coverage.

Snowflake (SNOW) is a data lake, -warehousing, and -sharing company that came public in 2020. To date, the company has over 3,000 customers, including nearly 30% of the Fortune 500. As enterprises continue to migrate workloads to the public cloud, significant obstacles have arisen, compromising performance of data queries, creating hefty data transformation costs, and yielding erroneous data. Snowflake seeks to address these issues with its platform, which gives all of its users access to their data lake, warehouse, and marketplace on various public clouds. We think Snowflake has a massive runway for future growth and should emerge as a data powerhouse. We project exceptional revenue growth in the years ahead and assign Snowflake a fair value estimate of $204 per share. We also assign Snowflake a no-moat rating, given the infancy of the business. But we think its moat trend is positive, as its multicloud platform exhibits switching costs and a network effect.

Morningstar does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.