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On Thursday, Deutsche Bank (ETR:DBKGn) analysts increased the price target for Snowflake Inc . (NYSE: NYSE:SNOW) shares to $220 from the previous $210 while maintaining a Buy rating. The stock, currently trading at $182.55, has seen a significant 43.8% surge over the past six months despite a recent 10% pullback last week, according to InvestingPro data. The adjustment follows Snowflake’s fourth-quarter earnings report, which met all expectations and provided an encouraging outlook for fiscal year 2026. The company’s performance and future guidance have led Deutsche Bank to reaffirm their Buy rating and continue to regard Snowflake as a top pick for 2025.
Snowflake’s latest financial results showcased robust product revenue, which exceeded the midpoint of the company’s guidance by 4% in the fourth quarter. With a strong revenue growth rate of 30.3% and a healthy gross profit margin of 67.3%, the company’s momentum is attributed to its rapid product development, which analysts believe is a key driver of the positive results. Snowflake’s largest customers have also contributed to the strong performance, with positive commentary indicating ongoing constructive relationships.
The company’s Net Revenue Retention (NRR) rates have reportedly stabilized in the mid-120% range, which is a positive sign of customer satisfaction and potential for revenue growth from existing customers. This metric is crucial as it indicates how well a company maintains and grows its revenue from year to year through existing customer accounts.
Additionally, Snowflake has seen a return to Non-GAAP Operating Margin (NGOM) expansion. While InvestingPro data shows the company isn’t currently profitable, analysts forecast profitability this year. This metric is important as it provides insight into the company’s operational efficiency and profitability, excluding certain non-cash expenses and one-time costs. InvestingPro subscribers have access to 8 more key tips about Snowflake’s financial health and growth prospects. An expanding NGOM suggests that Snowflake is managing its costs effectively while growing its business.
The positive assessment from Deutsche Bank reflects confidence in Snowflake’s ability to continue its growth trajectory and solidify its position in the cloud data platform market. The raised price target suggests that the investment bank sees further potential for Snowflake’s stock value to increase in the near future. For a comprehensive analysis of Snowflake’s valuation and growth prospects, including exclusive Fair Value estimates and detailed financial health scores, check out the full research report available on InvestingPro.
In other recent news, Snowflake Inc. has caught the attention of several analyst firms following its impressive financial performance. Stifel analysts have raised their price target for Snowflake to $210, citing a strong fourth-quarter performance with product revenue exceeding expectations and improved operating margins. RBC Capital Markets also increased their target to $221, noting a 28% rise in product revenue and the company’s success in attracting large customers. TD Cowen maintained their $210 target, highlighting stable growth trends and the positive impact of Snowflake’s Iceberg initiative.
Additionally, Truist Securities raised their price target to $225, emphasizing the company’s robust growth momentum and strategic execution. Needham followed suit, increasing their target to $215, and praised Snowflake’s new product introductions and consistent consumption trends. Snowflake’s management has forecasted a 24% growth in product revenue for fiscal year 2026, slightly above consensus estimates, with potential acceleration in the latter half of the year.
The company’s CFO, Mike Scarpelli, announced his retirement, leaving Snowflake in what analysts describe as a strong operational state. Analysts across the board maintain a positive outlook on Snowflake, with several firms reaffirming their Buy ratings. This wave of optimism reflects confidence in Snowflake’s strategic initiatives and market position.
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