Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
On Monday, DA Davidson reiterated a Buy rating on Snowflake Inc . (NYSE: NYSE:SNOW) with a price target of $200.00. According to InvestingPro data, the stock has shown strong momentum with a 53.54% gain over the past six months, though it’s currently trading below its 52-week high of $235.66. The firm’s analyst, Gil Luria, provided insights ahead of Snowflake’s fourth-quarter earnings report, which is scheduled for release on Wednesday, February 26, 2025. With a substantial market capitalization of $55.3 billion and revenue growth of 30.28% over the last twelve months, Luria highlighted Snowflake as one of DA Davidson’s top picks for the year, citing expected continued momentum across its core data warehouse product, Snowpark, and its recent artificial intelligence and machine learning (AI/ML) releases.
Luria’s optimism is supported by proprietary developer datasets, which indicate sustained activity among developers. This data is complemented by conversations with The DEN, an industry knowledge exchange, which suggest that Snowflake’s new AI/ML products are gaining traction.
The analyst’s commentary comes just days before Snowflake is set to disclose its fourth-quarter earnings, a report that is closely watched by investors for indications of the company’s performance and future potential.
Snowflake has been focusing on expanding its data warehousing solutions and enhancing its AI/ML capabilities, which are seen as critical areas for growth in the technology sector. The company’s efforts in these domains are expected to contribute to its financial results and strategic positioning.
Investors and stakeholders will be looking to Wednesday’s earnings report to validate the positive outlook presented by DA Davidson and to assess Snowflake’s progress on its strategic initiatives and product development. For deeper insights into Snowflake’s financial health and valuation metrics, InvestingPro subscribers can access comprehensive analysis and additional ProTips in the detailed Pro Research Report, available exclusively on the platform.
In other recent news, Snowflake Inc. has seen a series of adjustments to its stock price targets by several major financial firms. Bernstein raised its target for Snowflake shares to $161, citing stabilization in key business metrics and a cautiously optimistic outlook for the company’s near-term performance. TD Cowen increased its price target to $210, maintaining a Buy rating, and highlighted strong growth in Snowflake’s core SQL workloads and new products like Cortex AI Search. KeyBanc Capital Markets also maintained a $210 price target, emphasizing the company’s strategic role in Online Analytical Processing and the potential upside in fourth-quarter product revenue.
BofA Securities adjusted its price target to $205, noting Snowflake’s significant growth but acknowledging competitive challenges from rivals like Databricks. The firm retained a Neutral rating, suggesting a wait-and-see approach regarding Snowflake’s broader market expansion. UBS raised its price target to $190, aligning Snowflake’s valuation with its high-growth software peers, while maintaining a Neutral rating. These developments come as investors closely monitor Snowflake’s upcoming fourth-quarter earnings report, which is expected to provide further insight into the company’s financial trajectory and market positioning.
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