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Investing.com - Bernstein SocGen Group raised its price target on Snowflake Inc. (NYSE:SNOW) to $221.00 from $191.00 on Thursday, while maintaining a Market Perform rating following the company’s second-quarter earnings report. The stock, currently trading at $200.39 with a market capitalization of $66.7 billion, has delivered an impressive 79.63% return over the past year, according to InvestingPro data.
Snowflake delivered better-than-expected results for Q2 2026, with the stock rising approximately 11% in after-hours trading. The company reported healthy customer revenue performance obligation (CRPO) growth of 33% and an improved net revenue retention (NRR) rate of 125%. While the company maintains strong revenue growth of 27.5%, InvestingPro data shows it remains unprofitable with a net loss of $1.4 billion in the last twelve months.
The data cloud company increased its full-year 2026 guidance, with Bernstein noting there were "no indications of an increase in macro concern." The analyst firm suggested that headwinds from artificial intelligence seen last year appear to have abated, similar to recent strength observed at hyperscalers and MongoDB. According to InvestingPro, analysts expect the company to turn profitable this year with a forecasted EPS of $1.22 for FY2026. Get access to 7 more exclusive InvestingPro Tips and comprehensive analysis for Snowflake through the Pro Research Report.
Bernstein raised its target multiple from 11.5x to 12.5x to reflect the improved growth outlook, while rolling forward its financial model. Despite the positive quarter, the firm maintained its Market Perform rating.
The analyst expressed concerns that Snowflake stock is "priced to perfection" and maintaining its current multiple will be difficult, with long-term worries about the core business and competition in AI and related areas.
In other recent news, Snowflake Inc . has reported strong second-quarter earnings, prompting several analysts to raise their price targets for the company. Snowflake exceeded its revenue guidance by $50 million, marking the largest beat in absolute dollars since becoming a public company, according to Cantor Fitzgerald, which increased its price target to $275. Rosenblatt also raised its target to $250, noting a 32% growth in product revenue that surpassed both their own and consensus estimates. Stifel joined in by raising its target to $260, citing a 5% beat in product revenue expectations. DA Davidson set its new target at $275, highlighting a reacceleration in product revenue due to large customer migrations. Evercore ISI went further, raising its price target to $280, driven by expectations of accelerating revenue growth in the high 20% range. These developments reflect a positive outlook from analysts following Snowflake’s recent financial performance.
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