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Investing.com - JPMorgan has raised its price target on Snowflake Inc. (NYSE:SNOW) to $255.00 from $225.00 while maintaining an Overweight rating on the data cloud company. The stock, currently trading at $200.39, has delivered an impressive 79.6% return over the past year, though InvestingPro analysis suggests the stock is slightly overvalued at current levels.
The firm cited Snowflake’s accelerated pace of product innovation, particularly around artificial intelligence and machine learning capabilities, as a key factor in the revised outlook.
JPMorgan noted that Snowflake continues to benefit from "demonstrable secular tailwinds," a view supported by the firm’s CIO Survey and partner checks that indicate strong market positioning.
The research note highlighted Snowflake’s favorable competitive positioning in the longer term as the data layer increasingly becomes a control point for AI applications.
JPMorgan also expressed confidence in Snowflake’s business model, suggesting that the combination of the company’s growth profile and cash flow dynamics would prove advantageous through economic cycles. While currently unprofitable, analysts tracked by InvestingPro expect the company to achieve profitability this year, with price targets ranging from $150 to $440.
In other recent news, Snowflake Inc . reported impressive second-quarter results, leading to a series of price target increases from several analyst firms. UBS raised its price target to $285 from $250, citing a strong data cycle and product revenue growth of 32%, which exceeded expectations. Oppenheimer also increased its target to $275 from $250, noting a net revenue retention rate improvement to 125% and a 32.5% year-over-year increase in remaining performance obligations. Mizuho raised its target to $260 from $235, describing Snowflake’s earnings as "outstanding" with product revenue growth significantly surpassing Wall Street’s expectations. Truist Securities adjusted its price target to $270 from $235, highlighting a "powerful acceleration" in product revenue driven by AI data readiness trends. Similarly, Jefferies increased its target to $270 from $250 following a record $53 million revenue beat and a 6 percentage point acceleration in product revenue growth. These developments reflect broad-based demand and increased platform consumption for Snowflake’s offerings.
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