JPMorgan maintains positive outlook on Snowflake stock with $225 target

Published 04/06/2025, 11:30
JPMorgan maintains positive outlook on Snowflake stock with $225 target

On Wednesday, analysts at JPMorgan reiterated their Overweight rating for Snowflake Inc . (NYSE: NYSE:SNOW) stock, maintaining a price target of $225. This decision follows Snowflake’s recent Investor Day presentation in San Francisco, which highlighted the company’s strategic vision for the data cloud amidst the growing influence of artificial intelligence. The stock, currently trading near its 52-week high of $210.82, has delivered an impressive 52.66% return over the past year. According to InvestingPro data, the company commands a substantial market capitalization of $69.78 billion, though current technical indicators suggest the stock may be in overbought territory.

The presentation, part of Snowflake’s annual Summit conference, focused on the company’s product and technology roadmap. Although financial guidance was not provided due to the ongoing search for a new Chief Financial Officer, analysts noted a positive tone from Snowflake’s management. The company appears to be benefiting from various operational initiatives since Sridhar Ramaswamy became CEO in February 2024. InvestingPro analysis reveals strong management confidence, with aggressive share buybacks and 24 analysts revising their earnings expectations upward for the upcoming period. For deeper insights into Snowflake’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

Key points from the presentation included the hiring of over 500 sales and marketing personnel in the first fiscal quarter of 2025, as stated by newly appointed Chief Revenue Officer Mike Gannon. This hiring surge reflects Snowflake’s market opportunities, contrasting with more restrained hiring trends across other software companies.

Snowflake also discussed the industry adoption of Iceberg data formats, emphasizing the benefits of open data table formats that ease customer transitions between data processing engines. The company believes these formats will attract customers to platforms offering the most value, positioning Snowflake favorably in the market.

In addition, Snowflake unveiled several new products aimed at enhancing its AI Data Cloud vision. These include Openflow for data ingestion, Gen2 for improved analytics, Adaptive Compute for resource management, and AI-driven tools like Snowflake Intelligence and Cortex AISQL. The company continues to focus on innovation, reinforcing its competitive positioning in the data layer as AI’s influence grows. This innovation-driven approach has helped fuel Snowflake’s robust revenue growth of 27.5% year-over-year, though the company is yet to achieve profitability in the last twelve months.

In other recent news, Snowflake Inc. announced new product offerings at its annual Snowflake Summit 2025, aiming to enhance AI adoption within enterprises. The company introduced Cortex Knowledge Extensions, which will soon be available on the Snowflake Marketplace, allowing businesses to integrate real-time news and content into their AI applications. Additionally, Snowflake revealed a new feature for sharing Semantic Models, currently in private preview, to improve the integration of AI-ready structured data into workflows. UBS analysts upgraded Snowflake’s stock rating to Buy, with a new price target of $265, citing increased spending on data solutions and Snowflake’s expanded data management portfolio. Evercore ISI analysts raised their price target for Snowflake to $240, maintaining an Outperform rating, based on expectations of revenue growth and margin expansion. Morgan Stanley (NYSE:MS) reiterated an Equalweight rating with a $200 target, emphasizing Snowflake’s focus on product innovation. Citizens JMP maintained a Market Outperform rating with a $245 price target, highlighting the company’s impressive year-to-date performance. These developments underscore Snowflake’s strategic moves to capitalize on the growing demand for AI and data solutions.

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