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Investing.com - KeyBanc Capital Markets has reiterated its Overweight rating and $250.00 price target on Snowflake Inc . (NYSE:SNOW), currently trading at $192.63, following its quarterly survey of 15 customers and partners. According to InvestingPro data, analyst targets range from $150 to $440, reflecting mixed market sentiment.
The survey revealed steady results with some positive developments, including increased on-premises data warehouse migration contributing to near-term spending while maintaining long-term growth potential. This aligns with Snowflake’s impressive 27.5% revenue growth over the last twelve months. Data engineering adoption showed strength through Dynamic Tables and Snowpark features.
KeyBanc also noted increasing production use cases for generative AI, with respondents indicating Snowflake’s data gravity provides a strategic advantage in this area. The firm maintained its positive outlook despite some customers planning to migrate data out of Snowflake with Iceberg, though the net impact on workloads remains neutral.
The survey showed mixed interest in Postgres (Crunchy Data) adoption, with approximately half of respondents expressing some interest while others remained uncertain or uninterested. Cortex adoption remains in early stages, aligning with management’s statements about its immaterial contribution.
KeyBanc cited additional supportive factors for its positive stance, including favorable data points from recent CIO and value-added reseller surveys, accelerating hyperscaler growth, positive comments from Microsoft (NASDAQ:MSFT)’s fiscal fourth-quarter earnings, and a stable competitive environment. InvestingPro analysis reveals the company maintains a FAIR overall financial health score, with particularly strong growth metrics. Discover more insights and 6 additional ProTips with an InvestingPro subscription, including detailed valuation analysis and growth projections.
In other recent news, Snowflake Inc. is preparing to release its quarterly earnings, with JMP Securities maintaining a Market Outperform rating and a $260 price target. UBS, however, has adjusted its price target for Snowflake to $250 from $265, while still keeping a Buy rating, after evaluating recent demand trends and future outlooks. Snowflake has also made strategic moves by investing in Hightouch’s AI platform alongside Capital One (NYSE:COF) Ventures, which will aid in the development of AI agents for marketing purposes. Additionally, Snowflake has partnered with Bloomreach to enhance marketing data activation, allowing businesses to connect customer data stored in Snowflake with Bloomreach’s AI-powered marketing solutions. This integration aims to improve personalization efforts by synchronizing customer attributes, event data, and product catalogs. Furthermore, Snowflake participated in a significant funding round for AI startup Reka AI, contributing to Reka AI’s valuation increase to over $1 billion. These developments highlight Snowflake’s active role in both strategic investments and partnerships in the AI and marketing sectors.
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