Piper Sandler maintains Snowflake stock rating, sees AI growth potential

Published 04/06/2025, 14:18
Piper Sandler maintains Snowflake stock rating, sees AI growth potential

On Wednesday, Piper Sandler analysts reiterated their Overweight rating for Snowflake Inc . (NYSE: NYSE:SNOW) with a price target of $215.00. According to InvestingPro data, the stock is trading near its 52-week high of $210.82, with 24 analysts recently revising their earnings estimates upward for the upcoming period. This decision follows insights gathered from the 2025 Snowflake Summit and Investor Day, highlighting cultural shifts toward accountability and innovation under the leadership of new CEO Sridhar Ramaswamy, who took over in early 2024.

The analysts noted the absence of new financial updates, attributing it to the ongoing search for a new CFO. However, discussions with company leaders and CIOs at the event reinforced confidence in Snowflake’s potential to become a leading data platform, particularly in AI monetization. The company’s market position is reflected in its substantial $69.78 billion market capitalization and impressive 27.5% revenue growth over the last twelve months.

Piper Sandler emphasized the importance of Snowflake’s accelerating pace of innovation and strategic technology acquisitions, which they believe enhance the company’s ability to capitalize on AI opportunities. They maintain that Snowflake is well-positioned as a key platform enabler for AI, aligning with their Rule 50 business model that targets 25% growth and 25%+ free cash flow margins at a $4 billion+ annual recurring revenue scale.

The firm remains optimistic about Snowflake’s growth prospects, citing it as one of their highest conviction growth ideas. The analysts’ confidence is rooted in the company’s strategic focus and the favorable market conditions for AI monetization. While currently unprofitable, InvestingPro analysis shows strong momentum with a 52.66% return over the past year, and analysts project profitability in the coming year. For deeper insights into Snowflake’s valuation and growth metrics, explore the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Snowflake Inc. has been the focus of several analyst reports following its annual summit and investor day. Citi analysts maintained a Buy rating with a price target of $245, highlighting Snowflake’s increased emphasis on Enterprise AI and new product launches such as the Snowflake Intelligence Agent and Gen 2 Data Warehouse. Loop Capital also raised its price target to $245, citing the company’s strong performance and innovation in data analytics and AI. Mizuho (NYSE:MFG) analysts increased their price target to $235, praising Snowflake’s robust go-to-market strategy and product innovation, which are expected to drive growth into fiscal year 2026.

Stifel analysts reaffirmed their Buy rating with a $220 price target, noting Snowflake’s advancements in data integration and AI initiatives. Meanwhile, DA Davidson reiterated a Buy rating with a $250 price target, expressing optimism about Snowflake’s strategic position and innovative product offerings like OpenFlow and Cortex AISQL. Across these reports, analysts generally express confidence in Snowflake’s ability to maintain its leadership in data warehousing and expand into AI and machine learning. The company’s strategic focus on product innovation and operational efficiency is seen as a key factor in its ongoing success.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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