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On Tuesday, Evercore ISI sustained its optimistic stance on Snowflake Inc . (NYSE: NYSE:SNOW), maintaining an Outperform rating and a $230.00 price target. The stock, currently trading at $146.16 with a market capitalization of $48.77 billion, has shown mixed performance with a notable 32.6% gain over the past six months despite recent volatility. According to InvestingPro data, analyst targets range from $115 to $235, reflecting diverse market expectations. The firm’s analysts project a potential reacceleration of the company’s revenue growth by FY26, underpinned by its stable core business and the increasing contribution of high-growth products such as Snowpark, Dynamic Tables, and Cortex.
The analysts highlight Snowflake’s ability to navigate near-term market fluctuations and focus on the company’s long-term growth trajectory. They anticipate that despite software stocks being influenced by broader market trends in the short term, Snowflake’s total product revenue growth could pick up speed throughout 2025. The company has demonstrated strong execution with a robust 29.21% revenue growth and maintains a healthy gross profit margin of 66.72%.
Evercore ISI’s analysis suggests that Snowflake’s core data warehousing business will continue to grow at a steady pace, complemented by a significant revenue boost from its newer AI and data engineering products. They estimate that these new offerings could represent approximately 8% of the company’s product revenue in FY26, amounting to around $330 million.
The firm also notes improved execution within Snowflake’s go-to-market organization and a broader industry focus on data modernization, which they believe has led to more robust core bookings. This, in turn, is expected to stabilize the company’s net revenue retention (NRR), supporting core revenue growth in the low to mid-20% range for FY26.
Looking further ahead, Evercore ISI estimates that Snowflake’s data engineering and AI products could account for more than 10% of total revenue by FY27, indicating the growing significance of these offerings to the company’s overall financial performance. The analysts encourage interested parties to reach out for a detailed breakdown of their revenue assumptions across Snowflake’s core and emerging product lines. For investors seeking deeper insights, InvestingPro offers comprehensive analysis with 10+ additional ProTips and detailed financial metrics, including exclusive Fair Value calculations and growth projections. The platform’s Pro Research Report provides in-depth analysis of Snowflake’s market position and growth potential among 1,400+ top US stocks.
In other recent news, Snowflake Inc. reported significant developments that are likely to interest investors. Citi analysts have increased their price target for Snowflake to $235, maintaining a Buy rating, following the company’s strong fourth-quarter earnings. The report highlighted Snowflake’s potential to sustain a 30% revenue growth rate and maintain a free cash flow margin above 25%, positioning it among the top tier of software companies. Similarly, RBC Capital Markets reaffirmed their Outperform rating with a price target of $221, after discussions with Snowflake’s CFO, citing the company’s strategic direction and robust market opportunities as key factors. DA Davidson also reiterated a Buy rating with a $225 target, emphasizing Snowflake’s attractive valuation and growth potential, especially in the context of artificial intelligence and cloud computing trends.
Additionally, Snowflake announced a leadership change with the appointment of Mike Gannon as the new Chief Revenue Officer, effective March 2025. Gannon, who brings extensive experience from VMware (NYSE:VMW) by Broadcom (NASDAQ:AVGO), succeeds Chris Degnan, who is retiring after helping Snowflake achieve $3.4 billion in revenue last fiscal year. This transition is expected to support Snowflake’s continued expansion and strategic initiatives in the enterprise AI sector. These recent developments underscore Snowflake’s ongoing efforts to strengthen its market position and capitalize on emerging technological shifts.
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