U.S. stocks edge higher; solid earnings season continues
On Wednesday, Mizuho (NYSE:MFG) Securities increased its price target on Snowflake Inc . (NYSE:SNOW) shares to $205 from the previous $195, while retaining an Outperform rating on the stock. Currently trading at $183.55, Snowflake has seen 33 analysts revise their earnings upwards for the upcoming period, according to InvestingPro data. The adjustment reflects a positive outlook on the company’s financial performance, with analysts citing several factors that contribute to the optimistic assessment.
According to Mizuho analysts, recent checks with partners have yielded generally favorable results, including reports of large transactions and a noted improvement in the adoption of Snowpark, Snowflake’s developer framework. This uptick in adoption marks the first of its kind, signaling growing interest and usage among Snowflake’s customer base. The company’s strong momentum is reflected in its impressive 30.3% revenue growth over the last twelve months, with a healthy gross profit margin of 67.3%.
The analysts also expressed confidence in Snowflake’s ability to deliver a strong product revenue performance for the current quarter. This anticipated upside is a key driver behind the decision to lift the price target, suggesting expectations for robust financial results.
Snowflake, a cloud-based data warehousing company, has been the subject of market rumors regarding a potential acquisition of Redpanda. However, Mizuho’s analysts have set aside this speculation in their evaluation, focusing instead on the concrete evidence of Snowflake’s solid business activities and the positive implications for revenue.
The price target increase by Mizuho is an indication of the firm’s belief in Snowflake’s continued growth and success within the competitive cloud data platform sector. The Outperform rating maintained alongside the raised price target suggests that Mizuho views Snowflake’s stock as likely to perform better than the broader market in the foreseeable future. With the company’s next earnings report due on February 26, investors seeking deeper insights can access comprehensive analysis and 12 additional ProTips through InvestingPro’s detailed research reports, which cover over 1,400 top US stocks.
In other recent news, Snowflake Inc. has been receiving positive attention from several analyst firms. Evercore ISI has raised Snowflake’s stock price target to $200, expecting a moderate outperformance in its fourth-quarter product revenue. The firm anticipates a potential for revenue and margin improvements in the fiscal year 2026 (FY26).
Wedbush Securities also increased its price target for Snowflake to $210, citing the company’s strong innovation pipeline, particularly in artificial intelligence (AI) and machine learning (ML). The firm noted Snowflake’s advanced data processing and warehousing capabilities are increasingly meeting the needs of enterprises.
Cantor Fitzgerald initiated its coverage of Snowflake with an Overweight rating and a price target of $201. The firm highlighted Snowflake’s position as a frontrunner in the cloud data warehousing sector, with expectations of robust Remaining Performance Obligations (RPO) growth.
Barclays (LON:BARC) upgraded its rating for Snowflake to Overweight, setting a price target of $190. The firm noted that Snowflake is entering FY26 with a stronger lineup of new products, particularly in AI, ready to contribute to growth.
Lastly, Piper Sandler increased Snowflake’s stock target to $208, maintaining an Overweight rating. The firm cited a positive outlook for the company’s growth potential, particularly in AI, data engineering, and machine learning.
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