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On Thursday, JPMorgan analyst Mark Murphy increased the price target on Snowflake Inc . (NYSE: NYSE:SNOW) shares to $225 from $210, while retaining an Overweight rating. Currently trading at $179.12, the stock sits near InvestingPro’s Fair Value estimate, with analyst targets ranging from $115 to $440. Murphy highlighted Snowflake’s positive fundamentals and its potential for growth, driven by several company-specific factors and a robust ecosystem.
Snowflake recently reported a strong first-quarter performance, with total revenue reaching $1.042 billion, a 26% year-over-year increase, exceeding consensus estimates. The company maintains impressive growth metrics, with a five-year revenue CAGR of 69% and a healthy gross profit margin of 66.7%. Product revenue also saw a similar uptick, contributing to the company’s financial success. A notable highlight was the closing of two $100 million-plus deals, which alleviated concerns about renewal dynamics from the previous quarter.
The company’s ambitious sales and marketing headcount expansion in Q1 reflects its confidence in business growth. Snowflake also continues to innovate rapidly, launching over 125 new product capabilities in the quarter. This includes SnowConvert, which aids in migrating legacy data warehouses, potentially accelerating the displacement of outdated systems.
Snowflake’s guidance for the second quarter projects Product revenue to be around $1.038 billion, a 25% year-over-year growth, slightly ahead of street expectations. The firm has also raised its FY26 Product revenue outlook to $4.325 billion, indicating a 25% year-over-year growth, following the first-quarter performance that surpassed initial projections.
Murphy’s analysis suggests that Snowflake’s strong growth trajectory and cash flow dynamics demonstrate the strength of its business model. The company’s focus on artificial intelligence and machine learning technologies, along with its competitive positioning, are expected to contribute to its long-term success. According to InvestingPro, Snowflake operates with moderate debt levels and maintains strong liquidity, with current assets exceeding short-term obligations. For deeper insights into Snowflake’s financial health and growth prospects, including 8 additional exclusive ProTips, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Snowflake Inc. has reported strong earnings and revenue results, exceeding expectations across multiple metrics. The company’s first-quarter performance saw a 26% year-over-year increase in revenue, with product revenue surpassing forecasts by $39 million. Snowflake also raised its full-year revenue growth projection, indicating a positive outlook for the fiscal year 2026. Barclays (LON:BARC), UBS, Piper Sandler, Wolfe Research, and Bernstein SocGen have all adjusted their price targets for Snowflake, reflecting varying levels of optimism. Barclays and Piper Sandler maintain an Overweight rating, with price targets now set at $219 and $215, respectively. Wolfe Research raised its target to $230, citing Snowflake’s strong product revenue and operational efficiency. UBS increased its target to $210 while maintaining a Neutral rating, and Bernstein SocGen adjusted its target to $191, retaining a Market Perform rating. Analysts from these firms have noted Snowflake’s robust growth potential, especially in data and AI sectors, though some express caution regarding long-term growth sustainability.
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