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Investing.com - KeyBanc has maintained its Overweight rating and $275.00 price target on Snowflake Inc. (NYSE:SNOW) following its third-quarter customer survey. The stock, currently trading at $234.03, has taken a significant 7.42% hit over the last week despite posting a 51.56% gain year-to-date, according to InvestingPro data.
The investment firm surveyed 20 customers and partners, expanding its research to include Databricks-specific insights as well. Results from the survey showed "incrementally positive" indicators for Snowflake. This aligns with broader analyst sentiment, as the company maintains a consensus "Buy" recommendation with price targets ranging from $170 to $500.
KeyBanc analyst Eric Heath noted the positive outlook was driven by improved customer spending intentions, broader product adoption across Snowflake’s offerings, and an improving outlook for the company’s AI capabilities and Cortex platform.
The survey results reinforced KeyBanc’s view that organizations are increasing investments in data platforms as part of their artificial intelligence initiatives. This trend has helped Snowflake achieve 28.37% revenue growth over the last twelve months, though the company remains unprofitable with a -$4.15 EPS for the same period.
According to the firm, Snowflake’s strategic positioning within the data stack is strengthening, suggesting the company is well-positioned to benefit as AI development and implementation move "up the stack." InvestingPro analysis indicates Snowflake is currently overvalued, though analysts predict profitability this fiscal year with $1.29 EPS. Investors should note Snowflake’s next earnings report is scheduled for December 3, just 9 days away.For deeper insights including 7 additional ProTips and comprehensive financial analysis, check out Snowflake’s Pro Research Report, available exclusively on InvestingPro.
In other recent news, Snowflake Inc . has been the focus of several analyst updates and company announcements. Citizens raised its price target for Snowflake to $325, maintaining a Market Outperform rating. This update follows comments from Snowflake’s Chief Revenue Officer, Mike Gannon, who projected the company would end the year with over $4.5 billion in revenue and aim for $10 billion in the coming years. Jefferies also increased its price target for Snowflake to $300, citing strong demand driven by artificial intelligence. Meanwhile, Oppenheimer reiterated its Outperform rating, expecting third-quarter growth to potentially exceed consensus estimates.
Additionally, Snowflake has announced a new integration with NVIDIA, incorporating CUDA-X libraries to enhance AI workflows within its platform, allowing for significantly faster processing speeds. The company also reported that its Snowflake Intelligence tool is now available to over 12,000 customers, offering advanced AI capabilities. These developments highlight Snowflake’s ongoing efforts to expand its technological offerings and maintain its competitive edge in the data cloud market.
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