SNOW attracted a downgrade to "equal weight" from "overweight"
Snowflake Inc (NYSE:SNOW) stock is down 3.9% before the bell, after a bear note from Wells Fargo. The analyst downgraded shares of the cloud computing company to "equal weight" from "overweight" and lowered its price target from $200 to $130, citing multiple headwinds.
Separately, Warren Buffett's Berkshire Hathaway (BRK), sold the entirety of its stake in Snowflake. That equated to 6.1 million shares, or around $910 million.
When we last covered SNOW in July, a historically bearish signal threatened to pressure it on the charts. The security then slipped to an Aug. 5, record low of $107.93, and now sports a 36% year-to-date deficit.
Coming into today, the majority of covering brokerages are bullish, and an unwinding of this optimism could create more headwinds. Of the 44 analysts with ratings on the stock, 30 still recommend a "buy" or better, and the 12-month target price of $191.02 is a 54.3% premium to last night's close. This leaves SNOW vulnerable to more bear notes.