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Snowflake (NYSE:SNOW) and Twilio (NYSE:TWLO) shares rose on Tuesday as analysts recently highlighted strong growth trends for both enterprise software companies.

Snowflake (SNOW) tacked on nearly 4% as investment firm Canaccord Genuity said the data warehousing company is “well positioned” to benefit from consolidation in the database and data warehousing markets.

Analyst Kingsley Crane, who has a buy rating and a $195 per-share price target on Snowflake (SNOW), noted that the spending environment should favor companies that are able to offer customers more products and services as they consolidate their vendors, with Snowflake (SNOW) being among them.

Other companies that should benefit from the trend towards consolidation include MongoDB (MDB), Datadog (DDOG) and Splunk (SPLK).

However, Crane also noted that Snowflake (SNOW), along with MongoDB (MDB) and Datadog (DDOG) could face “marginal incremental headwinds” to revenue as they reevaluate public cloud spending.

Nonetheless, Crane noted this is just one part that drives top-line growth and they are earlier in their growth cycles than the public cloud itself and they can drive revenue cross-selling their own platforms, while also winning new business and driving further consumption from existing customers.

Twilio (TWLO) gained nearly 2.8% as investment firm Piper Sandler said the company has seen better trends that would imply a revenue beat, “but positively was cited for strong momentum entering the year.”

Last week, Citi listed Snowflake (SNOW) among its favorite stocks in the enterprise application software space, but cautioned there may be a bumpy start to 2023.

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