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On Friday, KeyBanc Capital Markets sustained its optimistic stance on Snowflake Inc . (NYSE: NYSE:SNOW), maintaining an Overweight rating and a $210.00 price target. Currently trading at $184.96 with a market capitalization of $61 billion, Snowflake has shown strong momentum with a 37% gain over the past six months. The firm’s analyst, Eric Heath, voiced confidence in the cloud-based data-warehousing company ahead of its fourth-quarter earnings report set for Wednesday, February 26. According to InvestingPro data, the stock is currently trading near its Fair Value, with analysts maintaining a bullish consensus.
Heath’s reaffirmation comes after conducting surveys and conversations with chief information officers (CIOs), value-added resellers (VARs), and Snowflake’s customers and partners, which indicated that Online Analytical Processing (OLAP) is becoming a higher priority, and Snowflake is increasingly seen as a strategic vendor. Despite mixed results from peers and weaker public cloud outcomes in the previous quarter, the analyst identified several reasons for his positive outlook. InvestingPro data reveals impressive revenue growth of 30% over the last twelve months, with 6 additional exclusive insights available to subscribers.
The research highlighted that recent surveys and customer discussions suggest that Snowflake’s ’iceberg’ feature is not expected to negatively impact near-term (NT) storage revenue and might even contribute to an upside in the fourth quarter. Additionally, there is a growing momentum in Snowflake’s new product offerings such as data engineering, which has already achieved more than $200 million in annual recurring revenue (ARR), and Cortex, which could add a few percentage points to growth in fiscal year 2026.
KeyBanc also anticipates margin improvements as the company overcomes challenges related to GPU-related spending and commission expenses. The analyst also noted Snowflake’s minimal exposure to U.S. federal spending as a positive factor.
Looking ahead, KeyBanc believes that a roughly 4% upside scenario to Snowflake’s fourth-quarter product revenue guidance of $908.5 million at the midpoint is plausible. Furthermore, the firm considers a 22% initial fiscal year 2026 product revenue guidance attainable, with the potential for further upside throughout the year as new products ramp up and the core business stabilizes. With analyst targets ranging from $115 to $235, and InvestingPro forecasting profitability this year, investors can access a comprehensive analysis through InvestingPro’s detailed research report, one of 1,400+ available for top US stocks.
In other recent news, Snowflake Inc. has been the focus of several analyst updates following its third-quarter results. BofA Securities raised its price target for Snowflake to $205, maintaining a Neutral stance, citing the company’s growth and competitive challenges in the AI and developer-led workloads sectors. UBS also increased its price target to $190, reflecting Snowflake’s valuation within its peer group, while keeping a Neutral rating. Truist Securities maintained a Buy rating with a $210 target, highlighting the potential for Snowflake to exceed expectations through new products like Snowpark and Dynamic Tables.
Wolfe Research upgraded Snowflake’s stock rating to Outperform, setting a new price target of $235, due to improved consumption trends and a favorable competitive environment. This upgrade reflects Wolfe’s confidence in Snowflake’s financial growth and strategic initiatives. Meanwhile, KeyBanc Capital Markets kept its Overweight rating with a $210 target, based on a survey of Snowflake customers and partners that showed optimism for products such as Cortex and Iceberg.
These developments indicate a mix of analyst confidence and cautious optimism about Snowflake’s future performance. The company is anticipated to benefit from its strategic initiatives and the expanding adoption of artificial intelligence, although it faces challenges from competitors like Databricks. Investors are closely monitoring Snowflake’s progress as it continues to navigate the competitive landscape of data management and analytics.
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