Although the data company Snowflake has strong product offerings, ongoing overhangs leave Wolfe Research less confident in the company’s future. “When we launch coverage in April 2022. …we are optimistic that SNOW has the best management team in terms of software, best products, and best growth (potential for growth). ~50% revenue growth in CY24) While we still see all of the above as possible, current valuation leaves little room for error, while the macro worsens, the backdrop competition has changed and the growth outlook is very different,” wrote analyst Alex Zukin in a note Thursday. Zukin downgraded Snowflake stock to peer performance from outperform. dropped his price target, previously $160. Shares closed at $147.91 after Thursday trading.The analyst said macro problems have dampened growth expectations for the stock. company from 47% product revenue growth in fiscal 2024 to 34% year-over-year. Zukin added: “We’re also seeing increased competition from Databricks & Microsoft, who companies are clearly competing for the same workloads, shared mindsets, and dollars, which can create increased enforcement impediments.” He noted that the development of large language models and generalized AI applications has caused a shift in the data infrastructure and enterprise data storage industry. To be sure, he remains optimistic about the company’s management — calling it “the best management team in software” — as well as the best software-as-a-service product. Snowflake stock fell 0.6% on Friday before the bell. Shares are up just 3% in 2023, lagging the gains of the S&P 500. Meanwhile, stocks have gained more than 16% in the past 12 months. “We continue to look for better visibility into near- and long-term growth at current valuations,” said Zukin. —Michael Bloom of CNBC contributed to this report.