Loop Capital raises Snowflake stock target to $220

Published 22/05/2025, 13:06
Loop Capital raises Snowflake stock target to $220

On Thursday, Loop Capital Markets adjusted their outlook on Snowflake Inc . (NYSE: NYSE:SNOW), increasing the price target to $220 from $215 while maintaining a Buy rating on the company’s shares. According to InvestingPro data, the stock, currently trading at $179.12, has shown strong momentum with a 16% gain year-to-date, though technical indicators suggest it may be in overbought territory. The adjustment follows Snowflake’s impressive first-quarter financial results, which surpassed both Loop Capital’s and the consensus estimates. Snowflake reported product revenue of $997 million, exceeding Loop Capital’s forecast of $961 million by 4%. The company also demonstrated better-than-expected profitability, with non-GAAP operating margins reaching 8.8%, which was 370 basis points ahead of Loop Capital’s projections.

Snowflake’s management has provided strong and potentially conservative guidance for the full fiscal year, revising the year-over-year growth outlook from 24% to 25%. While the company maintained an impressive 66.72% gross profit margin in the last twelve months, profitability forecast remains unchanged as it continues to invest in growth. InvestingPro analysis indicates the company is currently trading near its Fair Value, with analysts projecting profitability in the current fiscal year. Get access to 8 more exclusive ProTips and comprehensive financial metrics with InvestingPro. Loop Capital has expressed confidence in Snowflake as a long-term beneficiary of the trend toward migrating analytical workloads to the cloud and the emerging opportunity in AI data management.

The firm’s financial metrics and outlook have shown improvement since the third quarter of fiscal year 2025, which, according to Loop Capital, justifies a higher forward multiple. The analysts anticipate that Snowflake’s stock will re-rate higher as the company maintains its growth trajectory and achieves a combination of accelerating growth and expanding margins.

Loop Capital’s revised price target of $220 is based on a 12.5x enterprise value to revenue multiple applied to their increased fiscal year 2028 estimates, which correspond to calendar year 2027. This target falls within the broader analyst range of $115 to $440, with the consensus showing a moderately bullish outlook on the stock. For deeper insights into Snowflake’s valuation and growth prospects, access the detailed Pro Research Report available exclusively on InvestingPro, covering what really matters about this and 1,400+ other top stocks. The analysts also expect that the upcoming annual user conference and investor day on June 3 will provide additional insights into Snowflake’s quarterly performance, go-to-market strategy, and new product developments.

In other recent news, Snowflake Inc. has captured the attention of several major analyst firms following its strong first-quarter 2026 earnings report. DA Davidson raised its price target for Snowflake to $250, citing robust performance and product revenue growth that exceeded expectations. Similarly, Evercore ISI increased its target to $232, highlighting a 26% year-over-year rise in product revenue and an impressive 9% operating margin, both surpassing prior guidance. Cantor Fitzgerald also adjusted its price target upward to $242, maintaining an Overweight rating due to Snowflake’s consistent ability to outperform financial forecasts.

Needham analysts raised their price target to $230 after Snowflake reported product revenue that surpassed guidance by 3.8%, and management provided an optimistic full-year outlook. Raymond (NSE:RYMD) James joined in, lifting its target to $212 and noting strong traction for Snowflake’s AI tools. Despite potential macroeconomic risks, Raymond James observed no decline in demand, supporting their Outperform rating. These recent developments reflect a consensus among analysts about Snowflake’s strong market position and growth potential, driven by strategic investments and innovative product offerings.

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