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On Thursday, BTIG analyst Gray Powell increased the price target for Snowflake Inc . (NYSE: NYSE:SNOW) shares, lifting it from $220.00 to $235.00 while reiterating a Buy rating on the stock. Currently trading at $179.12 with a market capitalization of $59.76 billion, InvestingPro data indicates the stock is slightly overvalued at current levels, though technical indicators show strong momentum with a notable return over the last month. The adjustment follows Snowflake’s impressive first-quarter results, which surpassed expectations, and an optimistic update on the company’s financial outlook for fiscal year 2026.
Snowflake reported a significant 26.2% year-over-year growth in product revenue, reaching $996.8 million in the first quarter, compared to BTIG’s estimate of $959.3 million and the consensus estimate of $962.3 million. The company maintains strong fundamentals with a healthy gross profit margin of 66.72% and overall revenue growth of 29.21% over the last twelve months. This growth exceeded the midpoint of the company’s guidance by $39.3 million, marking a notable achievement given the broader economic concerns in April. For deeper insights into Snowflake’s financial health and growth prospects, check out the comprehensive Pro Research Report available on InvestingPro.
In addition to the strong quarterly performance, Snowflake also raised its fiscal year 2026 product revenue guidance to $4,325 million, reflecting a 24.9% increase from the previous forecast of $4,280 million. The revised projections suggest a conservative yet promising outlook for the company’s growth trajectory.
BTIG’s analysis indicates that the widespread adoption of artificial intelligence (AI) is driving more workloads to cloud environments, which could benefit cloud data analytics platforms like Snowflake. This trend was also highlighted in a recent conference call by Palo Alto Networks (NASDAQ:PANW, Neutral).
Based on these factors, BTIG has expressed greater confidence in Snowflake’s future performance. The firm has also adjusted its fiscal year 2027 product revenue estimate upwards to $5,276 million from $5,217 million, further supporting the positive sentiment towards Snowflake’s prospects in the cloud data analytics sector.
In other recent news, Snowflake Inc. reported impressive first-quarter results, surpassing consensus expectations with total revenue reaching $1.042 billion, a 26% year-over-year increase. Product revenue also exceeded forecasts, contributing to a positive outlook for the company’s future growth. Following these results, several analysts have raised their price targets for Snowflake, with Goldman Sachs increasing its target to $230, JPMorgan to $225, Barclays (LON:BARC) to $219, UBS to $210, and Piper Sandler to $215. These updates reflect a strong belief in Snowflake’s continued performance and market position.
The company’s second-quarter guidance projects product revenue to be around $1.038 billion, indicating a 25% year-over-year growth. Snowflake’s fiscal year 2026 product revenue outlook has also been raised to $4.325 billion, demonstrating confidence in its growth trajectory. Analysts from firms like Goldman Sachs and JPMorgan have highlighted Snowflake’s robust ecosystem and its focus on artificial intelligence and machine learning technologies as key drivers of its success. Additionally, the company has shown resilience against potential macroeconomic challenges, reinforcing confidence in its guidance.
Snowflake’s strategic partnerships, such as those with Anthropic and OpenAI, and its significant increase in strategic enterprise commitments, further bolster its market position. The company’s ambitious sales and marketing headcount expansion and the launch of over 125 new product capabilities, including SnowConvert, underscore its commitment to innovation and growth. As Snowflake continues to navigate economic uncertainties, its performance and guidance suggest a robust demand for its enterprise data services.
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