Needham reiterates buy rating on Snowflake stock after AI push

On Thursday, Needham analysts reiterated their Buy rating for Snowflake Inc . (NYSE: NYSE:SNOW) stock, maintaining a price target of $230.00. The reaffirmation follows the Snowflake Summit ’25 in San Francisco, where the company showcased its commitment to open standards and advanced AI capabilities. The stock, currently trading near its 52-week high with a market capitalization of approximately $70 billion, has delivered an impressive 56% return over the past year.

Earlier this week, Snowflake introduced Snowflake Intelligence, a new feature set to enter Public Preview. This innovation combines new tools such as Openflow and Cortex Knowledge Extensions, aiming to expand AI capabilities to a wider range of SQL analysts beyond just data scientists. The company’s robust product development is supported by strong revenue growth of 27.5% year-over-year. For more detailed financial metrics and analysis, check out InvestingPro, which offers 12+ additional exclusive insights about Snowflake.

The company’s management emphasized the potential benefits of AI, focusing on delivering capabilities to a broader audience. The firm’s commitment to enhancing its product offerings was a central theme during the summit’s Investor Session.

Despite these product announcements, there were no updates to Snowflake’s financial model. The company is still in the process of searching for a new Chief Financial Officer.

In other recent news, several analysts have adjusted their price targets and ratings for Snowflake Inc., reflecting confidence in the company’s strategic direction and product innovations. RBC Capital increased its price target to $250, highlighting Snowflake’s competitive positioning and AI strategy. Similarly, TD Cowen raised its target to $240, citing advancements in core analytics and AI as key drivers. BTIG also revised its price target to $235, emphasizing the positive outlook from Snowflake’s recent summit and the company’s focus on AI and automation. Truist Securities reaffirmed its Buy rating with a $235 target, noting Snowflake’s significant product development and momentum in the enterprise AI market.

Piper Sandler maintained an Overweight rating with a $215 target, expressing optimism about Snowflake’s potential in AI monetization. The absence of new financial updates was attributed to the ongoing search for a new CFO, but analysts remain confident in the company’s growth trajectory. Snowflake’s recent acquisition of Crunchy Data and its focus on enhancing data lifecycle management were seen as promising developments. Analysts from various firms have reiterated their positive outlook, underscoring Snowflake’s strategic investments and innovations in the data management and analytics sector.

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