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Investing.com - Evercore ISI has raised its price target on Snowflake Inc. (NYSE:SNOW) to $280.00 from $240.00 while maintaining an Outperform rating on the data cloud company. The stock, currently trading around $200 with a market capitalization of $66.7 billion, has delivered an impressive 79.6% return over the past year according to InvestingPro data.
The price target increase represents potential upside based on Evercore’s expectation of accelerating revenue growth, which the firm now projects in the high 20% range.
Evercore attributes the growth acceleration to stabilization in Snowflake’s core business combined with contributions from artificial intelligence and data engineering workloads.
The research firm believes the combination of this revenue growth and operating margin leverage can drive further multiple expansion from current levels for Snowflake stock.
Evercore’s new price target is based on 15 times enterprise value to calendar year 2027 revenue, with the firm noting it continues to see room for further upward revisions to guidance and Street estimates.
In other recent news, Snowflake Inc . reported impressive second-quarter fiscal 2026 results, with total revenue reaching $1.14 billion, surpassing the consensus estimate of $1.09 billion. The company also reported non-GAAP earnings per share of $0.35, exceeding the consensus estimate of $0.27. Snowflake’s product revenue showed significant growth, with a 31.5% year-over-year increase to $1,091 million, beating both BTIG’s estimate of $1,039 million and the Street consensus of $1,041 million. This strong performance has led several analyst firms to raise their price targets for Snowflake. BTIG increased its target to $276, Raymond James raised it to $230, RBC Capital set it at $275, and Citizens JMP elevated it to $283. RBC Capital highlighted Snowflake’s acceleration at scale, noting a 32% product revenue growth compared to 26% in the previous quarter. Raymond James described the earnings report as a "beat and raise" quarter. These developments reflect a positive outlook from analysts on Snowflake’s recent performance.
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