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Monday, Mizuho (NYSE:MFG) analysts adjusted their outlook on Snowflake Inc . (NYSE: NYSE:SNOW), reducing the price target to $190 from $205, while still maintaining an Outperform rating on the company’s shares. Currently trading at $144.96, Snowflake’s stock price sits between analyst targets ranging from $115 to $235. According to InvestingPro data, the stock is currently fairly valued based on its proprietary Fair Value model. The revision comes in the wake of a sell-off across the sector, attributed to recent tariff issues. Despite the decrease in target price, the analysts view Snowflake as one of the more compelling investments within their coverage area.
The analysts highlighted Snowflake’s robust consumption activity and the ongoing secular trends that encourage enterprises to upgrade their data management systems. These factors are expected to continue propelling Snowflake’s growth into fiscal year 2026. The firm’s analysts also emphasized the potential for additional revenue streams from several new products and improved go-to-market strategies.
Snowflake’s minimal exposure to federal markets was noted as a positive aspect, particularly in a time where economic uncertainties have led to a higher perceived risk of recession. The analysts believe that Snowflake’s current trading at approximately 9 times its estimated calendar year 2026 revenue and 32 times its forward-looking free cash flow represents an attractive valuation for investors.
In their commentary, Mizuho analysts reiterated their confidence in Snowflake’s ability to maintain its momentum, citing the company’s emerging upside vectors that could further enhance its revenue prospects. Despite the lowered price target, the firm’s outlook on Snowflake remains optimistic, as they expect the company to continue to benefit from its strong market position and strategic initiatives.
In other recent news, Snowflake Inc. has received the Department of Defense Impact Level 5 (IL5) Provisional Authorization, allowing it to offer secure data solutions to various military and governmental agencies. This authorization enhances Snowflake’s capability to support national security objectives and modernize data cloud migration for the Department of Defense. In addition, Snowflake has expanded its support for Apache Iceberg tables, providing improved data management and analytics capabilities for its users. This integration is part of Snowflake’s commitment to open data standards and innovation.
Analysts have also weighed in on Snowflake’s prospects. Evercore ISI reiterated an Outperform rating with a $230 price target, expressing confidence in the company’s growth trajectory despite potential economic challenges. Truist Securities maintained a Buy rating with a $210 target, citing positive internal feedback and strong leadership from CEO Sridhar Ramaswamy. Meanwhile, Macquarie initiated coverage with a Neutral rating and a $160 price target, noting Snowflake’s strengths in the market but also highlighting competitive challenges and economic pressures.
These developments reflect Snowflake’s ongoing efforts to enhance its technological offerings and its strategic positioning in the data management space. The company’s focus on innovation and customer value continues to be a central theme in its business strategy.
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