BofA warns Fed risks policy mistake with early rate cuts
Investing.com - Guggenheim has reiterated its Neutral rating on Snowflake Inc . (NYSE:SNOW), currently valued at $65.1 billion, ahead of the company’s upcoming second-quarter fiscal 2026 earnings report scheduled for August 27. According to InvestingPro data, analysts maintain a bullish consensus with an average price target suggesting 22% upside potential.
The research firm noted that field checks for the quarter were "solid," with continued momentum and strategic decisions already showing impact within the channel. Guggenheim believes the second quarter targets are achievable as they imply a 29.5% decline in New ARR, though outperforming consensus expectations may be more challenging than in previous quarters. The company has maintained strong revenue growth of 27.5% over the last twelve months, as reported by InvestingPro.
Partner conversations indicated positive business trends for Snowflake, while AI-related discussions remain more muted, according to the research note. New product announcements are helping drive increased customer interest in the company’s capabilities.
Guggenheim highlighted that Chief Revenue Officer Mike Gannon has made a significant impact by creating a more partner-friendly business environment and showing early signs of enterprise sales skills. The firm believes Snowflake is making appropriate decisions to continue capturing its core cloud data warehouse opportunity.
Snowflake shares are currently trading at 13.8x EV/NTM Product revenue and 55.5x NTM FCF, according to Guggenheim’s analysis.
In other recent news, Snowflake has been active with several developments. UBS has adjusted its price target for Snowflake to $250, maintaining a Buy rating after assessing recent demand trends and the company’s second-half outlook. KeyBanc Capital Markets also reiterated its Overweight rating with a $250 target, highlighting positive developments in data engineering adoption and on-premises data warehouse migration. Meanwhile, JMP Securities continues to support a Market Outperform rating, setting a price target of $260, following positive industry feedback.
Additionally, Snowflake has made a strategic investment in Hightouch’s AI platform, alongside Capital One (NYSE:COF) Ventures, to enhance AI agents for marketing. The investment aims to further develop Hightouch’s AI Decisioning product, which automates customer marketing decisions. Snowflake has also partnered with Bloomreach to enhance marketing data activation. This collaboration allows businesses to integrate customer data stored in Snowflake with Bloomreach’s AI-powered marketing solutions for better personalization.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.