Snowflake ‘one of the most compelling stories in software’ ahead of earnings: Analyst – CrowdStrike Holdings (NASDAQ:CRWD), Couchbase (NASDAQ:BASE)

As the software industry approaches a crossroads, one industry analyst expressed confidence in a few big names ahead of third-quarter earnings season.

The software analyst: DA Davidson Analyst Gil Luria repeated Buy reviews for Palo Alto Networks Inc PANW, Couchbase Inc BASING And Snowflake Inc SNOW in a note published Monday.

Cybersecurity and infrastructure takeaways: For Palo Alto Networks, Luria expects strong sales performance, aided by increasing demand for firewalls and the aftermath of the Crowdstrike Holdings Inc ROUGH failure.

“We believe PANW will easily exceed Q1 ARR guidance (implies NNARR at the mid-point of -50% Y/Y) and also meet or exceed CRPO expectations. “If these two metrics move forward, FY25 ARR guidance will be raised and FY25 total RPO expectations will be maintained and/or increased, all of which we expect and the stock will respond positively,” the analyst said .

Palo Alto Networks reports earnings results on Wednesday.

Meanwhile, Luria is also bullish on Couchbase, citing the dynamics that led to profit losses in the second quarter as factors that won’t repeat.

“So we expect a rise and a rise and a recovery in the shares as expectations are low,” the analyst said. Couchbase’s next earnings report is on December 3.

Calculate takeaways: Snowflake also reports earnings on Wednesday. Luria believes the Bozeman, Montana-based company is “well positioned” ahead of the report and remains “one of the most compelling stories in software.”

The analyst is optimistic about the company’s initiatives in artificial intelligence and machine learning and its appeal among developers. Snowflake meets both DA Davidson software benchmarks for price-free-cashflow multiples and strong growth.

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