Nucor earnings beat by $0.08, revenue fell short of estimates
On Thursday, Barclays (LON:BARC) analyst Raimo Lenschow updated Snowflake Inc . (NYSE: NYSE:SNOW) price target, raising it to $219 from the previous $203, while reiterating an Overweight rating on the shares. Lenschow’s optimism is fueled by expectations that the first quarter will continue the momentum around Snowflake’s growth narrative. With a market capitalization of $59.76 billion, Snowflake’s stock has already seen a 16% year-to-date increase, outperforming the broader market index. InvestingPro data indicates the stock is trading near its Fair Value, with technical indicators suggesting overbought conditions.
According to Lenschow, Snowflake’s quarterly results surpassed the high expectations of investors, as evidenced by conversations with them. The company’s top-line beat and guidance for the second quarter and fiscal year 2026 product revenue were both above Wall Street’s expectations. This performance has contributed to a rise in investor confidence, with InvestingPro data showing impressive revenue growth of 29.21% over the last twelve months. While currently unprofitable, analysts tracked by InvestingPro expect the company to achieve profitability this year. Get access to 8 more exclusive InvestingPro Tips and comprehensive analysis through the Pro Research Report.
Furthermore, the company’s decision to slightly raise its fiscal year 2026 product revenue guidance above the level of the first-quarter beat suggests that Snowflake’s accelerated product development is effectively driving continued consumption strength. Despite a weaker than anticipated cash flow, the analyst believes that Snowflake’s reaffirmation of its fiscal year 2026 adjusted free cash flow (FCF) margin guidance, coupled with robust first-quarter bookings, should mitigate any significant concerns.
Barclays anticipates that Snowflake’s stock will respond positively to these developments. The investment firm’s maintained Overweight rating and increased price target reflect confidence in Snowflake’s continued performance and market position.
In other recent news, Snowflake Inc. reported strong first-quarter earnings, with a 26% year-over-year revenue increase, surpassing expectations. The company also raised its full-year revenue growth projection from 24% to 25%. Several analyst firms have responded to these results by adjusting their price targets for Snowflake. UBS raised its price target to $210, maintaining a Neutral rating, while Piper Sandler increased its target to $215, keeping an Overweight rating. Wolfe Research lifted its target to $230, reaffirming an Outperform rating, and BofA Securities adjusted its target to $220, retaining a Neutral rating. Bernstein SocGen also raised its target to $191, maintaining a Market Perform rating. Analysts highlighted Snowflake’s robust product growth and operational efficiency, noting its strong position in data and AI sectors. Despite these positive developments, some analysts expressed concerns about potential long-term growth deceleration. However, the absence of macroeconomic pressures in Snowflake’s report was seen as a positive sign of stability.
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