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Investing.com - Piper Sandler raised its price target on Snowflake Inc. (NYSE:SNOW) to $285.00 from $215.00 on Thursday, while maintaining an Overweight rating on the stock. The new target sits well within the analyst range of $150-$440, according to InvestingPro data, which also shows the stock has delivered an impressive 79.6% return over the past year.
The firm cited accelerating product growth, which reached 31.5% year-over-year compared to 26.2% in the previous period, with Snowflake now achieving a $4 billion-plus run rate. This growth acceleration comes from both core consumption increases and new artificial intelligence tailwinds. InvestingPro data reveals the company maintains a healthy 66.6% gross profit margin, though it’s currently trading at premium valuations, reflecting high growth expectations.
Piper Sandler noted that CEO Sridhar Ramaswamy, who took over six quarters ago, has brought a "founder mode always-on approach" that has increased accountability and elevated the pace of change across sales, operations, and research and development departments.
The 22% year-to-date surge in Snowflake’s sales and marketing headcount suggests even stronger growth ambitions for the data cloud company, according to the research firm.
Piper Sandler’s new price target reflects higher estimates and an increased target EV/FCF multiple of 32x versus the previous 30x, based on rising confidence that Snowflake’s new AI product roadmap will continue to resonate with large enterprise customers.
In other recent news, Snowflake Inc . has reported strong second-quarter earnings, leading to several analysts raising their price targets for the company. The cloud data platform’s total revenue reached $1,145 million, surpassing both Rosenblatt’s forecast of $1,080.6 million and consensus estimates of $1,088 million. Snowflake also achieved a product revenue growth of 32%, which was approximately 5% above Rosenblatt’s expectations. TD Cowen highlighted a growth acceleration to 32% in the second quarter, up from 26% in the first quarter, and raised its price target to $275 while maintaining a Buy rating. KeyBanc also increased its price target to $275, citing a significant beat in quarterly results and a 130% year-over-year growth in net new product revenue. Cantor Fitzgerald described Snowflake’s results as the company’s "largest beat in absolute dollars as a public company" and raised its price target to $275. Bernstein adjusted its price target to $221, noting healthy customer revenue performance obligation growth of 33% and an improved net revenue retention rate of 125%. These developments reflect a positive outlook from analysts following the company’s strong performance.
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