Raising Snowflake’s FVE to $295 as We Expect Flurry From Datasphere Growth; Shares Fairly Valued

We are raising our fair value estimate for no-moat Snowflake to $295 per share from $234 per share, as we’re even more optimistic about the overall database management systems, or DBMS, market and Snowflake’s ability to accumulate additional share. We believe the DBMS market can grow to $243 billion by 2030, marking a 14% 10-year CAGR, which is an acceleration for the market's historical 11% 10-year historical CAGR. Meanwhile, we think Snowflake’s revenue will grow at a 44% CAGR over the same period. Our in-house forecasts for the overall DBMS market are based on our estimates for overall expansion of the global datasphere--or total amount of data in existence.