Durable Goods (Jun F) -9.4% vs 9.3% Prior, Ex-Trans 0.2% vs 0.2%
On Thursday, KeyBanc Capital Markets increased its price target for Snowflake Inc . (NYSE: NYSE:SNOW) shares to $220 from the previous $210, while reaffirming an Overweight rating on the stock. Currently trading at $166.19, the stock has experienced a significant -10.15% decline over the past week, though it maintains a robust 43.84% gain over the last six months. InvestingPro analysis reveals 10 additional key insights about Snowflake’s market position and future prospects. The adjustment follows Snowflake’s impressive fourth-quarter performance, where the company surpassed product revenue expectations by 3.6%. With a substantial revenue growth of 30.28% over the last twelve months and strong liquidity position evidenced by a current ratio of 1.88, Snowflake’s guidance for fiscal year 2026 also exceeded the consensus and KeyBanc’s own estimates by $50 million and $100 million, respectively. Based on InvestingPro Fair Value analysis, the stock currently appears slightly undervalued despite trading at high revenue multiples.
The company’s management highlighted stable consumption patterns and the successful adoption of data engineering and artificial intelligence (AI) features. Notably, several large customers have been consuming more than their contractual commitments. The robust growth outlook for FY26 was attributed to several factors, including the stability in the core data warehouse business, positive contributions from its Iceberg initiative, and expected strength in the second half of the year due to the introduction of new products, planned customer data warehouse migrations, and an uptick in new logo acquisition.
Additionally, Snowflake announced an expanded partnership with Microsoft (NASDAQ:MSFT). This collaboration will enable the running of OpenAI models on Snowflake and the direct use of Cortex Agentic AI within Microsoft Copilot and Teams. Amid these developments, Snowflake’s CFO, Mike Scarpelli, has declared his intention to retire. He will remain in his role until a successor is appointed.
The raised price target reflects KeyBanc’s increased confidence in Snowflake’s growth trajectory, particularly its potential to expand beyond its core data warehouse services. The firm also sees Iceberg as a long-term positive and views Snowflake as a leader in the AI space. These factors combined have led to KeyBanc’s heightened conviction in the company’s prospects. For deeper insights into Snowflake’s market position and growth potential, InvestingPro offers a comprehensive Pro Research Report, part of its coverage of over 1,400 US equities, providing detailed analysis and actionable intelligence for informed investment decisions.
In other recent news, Snowflake Inc. reported strong fourth-quarter earnings, with product revenue reaching $943 million, a 28% year-over-year increase, surpassing analyst expectations. This performance led to several analyst firms adjusting their price targets for the company. Loop Capital raised its target to $215, while Evercore ISI increased theirs to $230, both maintaining positive ratings on Snowflake’s shares. Citizens JMP also raised its target to $201, highlighting the company’s product differentiation and market opportunities.
Raymond (NSE:RYMD) James adjusted its price target to $196, noting the positive impact of Snowflake’s Iceberg tables on workload processing. Cantor Fitzgerald updated its target to $228, emphasizing Snowflake’s significant fourth-quarter performance and potential for growth in AI and data engineering products. Snowflake’s management has projected a 24% growth in product revenue for the upcoming fiscal year, with expectations for strong margin expansion.
Additionally, CFO Mike Scarpelli announced plans to retire, pending the appointment of a successor. Analysts remain optimistic about Snowflake’s growth potential, citing stable revenue and expanding margins. The company’s ongoing innovation and strategic partnerships are seen as key factors in its future success.
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