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On Wednesday, KeyBanc Capital Markets sustained its Overweight rating on Snowflake Inc . (NYSE:SNOW) shares, alongside a stable price target of $210.00. According to InvestingPro data, the company currently trades near its Fair Value, with 33 analysts having revised their earnings upwards for the upcoming period. The data analytics giant, valued at over $60 billion, has demonstrated strong momentum with a 49% price return over the past six months. The endorsement follows a comprehensive quarterly survey of 16 Snowflake customers and partners, which provided insights into their spending intentions, product engagement, and the adoption of new offerings such as Iceberg and Gen AI.
The survey led to a more optimistic stance on several fronts. KeyBanc analysts noted a growing interest in Cortex, Snowflake’s data and machine learning platform, which is expected to significantly contribute in the medium term. This optimism is supported by Snowflake’s impressive 30% year-over-year revenue growth and robust gross profit margin of 67%. Additionally, the survey revealed a clearer understanding from customers regarding their plans for Iceberg, with a low likelihood of it affecting near-term storage revenues and a strong belief in its long-term benefits for increasing workloads on Snowflake.
Emerging products, including data engineering and Snowflake Intelligence, are also seeing robust interest, suggesting potential growth areas for the company. However, the survey indicated some challenges, such as early adoption stages for new products like Gen AI and a perceived strategic preference for Databricks among some customers and partners. Moreover, there was a noted decline in interest for Snowpark Container Services.
Neutral to mixed findings emerged from the survey as well. Near-term spending intentions saw a slight increase of about 1 percentage point quarter over quarter, although the projected growth rate remains modest at approximately 11%. Additionally, factors such as data sharing, platform independence, and cost have become less significant in customers’ decisions to choose Snowflake over its competitors.
KeyBanc’s reiteration of the Overweight rating and price target reflects a balanced view of Snowflake’s current position and future prospects based on direct feedback from the company’s customer and partner ecosystem. For deeper insights into Snowflake’s valuation and growth metrics, InvestingPro subscribers can access a comprehensive Pro Research Report, which includes detailed analysis of the company’s financial health, market position, and growth trajectory among 1,400+ top US stocks.
In other recent news, Snowflake Inc. has been the subject of several positive revisions from financial analysts. Mizuho (NYSE:MFG) Securities raised its price target for the company to $205, citing favorable reports of large transactions and increased adoption of Snowflake’s developer framework, Snowpark. Evercore ISI also increased its price target to $200, anticipating a moderate outperformance in Snowflake’s fourth-quarter product revenue.
Wedbush Securities increased its price target to $210, highlighting Snowflake’s continuous innovation, particularly in artificial intelligence (AI) and machine learning (ML) capabilities. Cantor Fitzgerald initiated coverage of Snowflake with an Overweight rating and a $201 price target, emphasizing the company’s position as a frontrunner in the cloud data warehousing sector and its potential for robust Remaining Performance Obligations (RPO) growth.
Finally, Barclays (LON:BARC) revised its rating for Snowflake to Overweight from Equalweight, setting a price target of $190. The upgrade reflects positive expectations for the company’s performance in fiscal year 2026, with a stronger lineup of new products, especially in AI. These are recent developments that reflect the growing confidence in Snowflake’s financial performance and innovation capabilities.
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