Citi raises Snowflake stock price target to $245

Published 22/05/2025, 17:24
Citi raises Snowflake stock price target to $245

On Thursday, Citi analysts, led by Tyler Radke, increased the price target for Snowflake Inc . (NYSE: NYSE:SNOW) shares from $235.00 to $245.00 while maintaining a Buy rating. The stock, currently trading at $198.96 with a market capitalization of $66.57 billion, is showing strong momentum, trading near its 52-week high according to InvestingPro data. Snowflake’s performance in the first quarter of 2026 was highlighted as particularly strong, with the company exceeding expectations due to resilient consumption, the introduction of new products, and a significant increase in bookings. The company achieved impressive revenue growth of 27.5% year-over-year, though InvestingPro data indicates it remains unprofitable over the last twelve months. The company’s contracted remaining performance obligations (cRPO) bookings rose by 40%, including two $100 million deals in the financial services sector.

The positive outlook for the second quarter and the full fiscal year of 2026 suggests that consumption trends are remaining strong as of May, despite broader economic uncertainties. This reassessment comes after Snowflake’s bookings showed a meaningful acceleration, marked by the closure of a couple of deals valued at over $100 million each in the financial services industry.

Snowflake’s management also observed notable performance in the retail sector, which could alleviate concerns regarding the impact of tariffs on its customer base. Citi’s analysts consider the company’s commentary on consumption patterns and the apparent lack of macroeconomic impacts as a favorable indicator for the broader consumption-based software industry.

The firm reiterated its Buy rating on Snowflake stock, naming it their top growth pick within the software sector. Anticipation is building for the company’s upcoming user conference and investor day, which is expected to provide further insights into Snowflake’s momentum with new products and artificial intelligence. The raised price target to $245 reflects Citi’s confidence in Snowflake, underpinned by higher estimates following its robust quarterly performance. While the company maintains a strong liquidity position with a current ratio of 1.58, InvestingPro analysis suggests the stock is currently trading above its Fair Value. Investors seeking deeper insights can access comprehensive analysis and 10+ additional ProTips through InvestingPro’s detailed research report, part of its coverage of 1,400+ US stocks.

In other recent news, Snowflake Inc. has reported a strong start to its fiscal year, with notable first-quarter performance that exceeded expectations. The company achieved a 26% increase in product revenue, surpassing its own guidance and consensus estimates. Following these results, Snowflake has raised its full-year product revenue guidance by $45 million. Several financial firms have responded positively, with Macquarie, TD Cowen, RBC Capital, Truist Securities, and Monness Crespi Hardt all increasing their price targets for Snowflake, now ranging from $190 to $245. Analysts from these firms have maintained positive ratings, with TD Cowen and Truist Securities reiterating a Buy rating, while RBC Capital and Monness Crespi Hardt emphasized Snowflake’s robust growth and strategic positioning.

The company’s recent success is attributed to strong core consumption growth and new customer acquisitions, driven by effective go-to-market strategies and the adoption of Data Engineering products. Analysts have noted that Snowflake’s performance has not been affected by macroeconomic factors, and its ongoing development in artificial intelligence and machine learning is expected to contribute to future growth. Despite a slight decline in the net revenue retention rate, Snowflake’s financial metrics, such as remaining performance obligations, showed significant growth, indicating continued expansion. As Snowflake approaches its upcoming Investor Day, stakeholders are likely to pay close attention to any strategic insights or developments that may influence the company’s trajectory.

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