Snowflake (NYSE:SNOW) and Twilio (NYSE:TWLO) shares rose on Tuesday as analysts just lately highlighted robust growth trends for each enterprise software program corporations.

Snowflake (SNOW) tacked on almost 4% as funding agency Canaccord Genuity stated the info warehousing firm is “nicely positioned” to profit from consolidation within the database and information warehousing markets.

Analyst Kingsley Crane, who has a purchase score and a $195 per-share worth goal on Snowflake (SNOW), famous that the spending atmosphere ought to favor corporations which might be capable of supply prospects extra services as they consolidate their distributors, with Snowflake (SNOW) being amongst them.

Other corporations that ought to profit from the pattern in the direction of consolidation embrace MongoDB (MDB), Datadog (DDOG) and Splunk (SPLK).

However, Crane additionally famous that Snowflake (SNOW), together with MongoDB (MDB) and Datadog (DDOG) might face “marginal incremental headwinds” to income as they reevaluate public cloud spending.

Nonetheless, Crane famous this is only one half that drives top-line growth and they’re earlier of their growth cycles than the general public cloud itself they usually can drive income cross-selling their very own platforms, whereas additionally profitable new enterprise and driving additional consumption from present prospects.

Twilio (TWLO) gained almost 2.8% as funding agency Piper Sandler stated the corporate has seen higher trends that will suggest a income beat, “however positively was cited for robust momentum getting into the 12 months.”

Last week, Citi listed Snowflake (SNOW) amongst its favourite shares within the enterprise software software program area, however cautioned there could also be a bumpy begin to 2023.