Raymond James lifts Snowflake stock target to $196

Published 27/02/2025, 06:44
Raymond James lifts Snowflake stock target to $196

On Thursday, Raymond (NSE:RYMD) James analyst Simon Leopold increased the price target for Snowflake Inc . (NYSE: NYSE:SNOW) to $196 from the previous $188, while retaining an Outperform rating on the company’s shares. The adjustment follows Snowflake’s fourth-quarter earnings report, which surpassed expectations and included a raised outlook. According to InvestingPro data, analyst targets for Snowflake now range from $115 to $235, reflecting diverse market opinions about the company’s prospects.

Management’s optimistic tone during the earnings call appeared to resonate with investors, as Snowflake’s stock experienced a roughly 10% surge in after-hours trading. This uptick helped the stock recover from a decline that began at the start of February. InvestingPro data shows the stock has delivered an impressive 43.84% return over the past six months, despite a recent 10.15% pullback in the last week.

Leopold highlighted the impact of Iceberg tables, which have become a significant short-term driver for the company. The adoption of these open source data tables has led to an increase in workloads processed by Snowflake. This marks a positive shift from the initial caution expressed by the company’s management upon integrating the technology.

Additionally, Snowflake announced the upcoming retirement of CFO Michael Scarpelli. He will continue in his role until his successor is appointed, ensuring a gradual transition. This approach seems to have been well received by the market, contrasting with the reaction to former CEO Frank Slootman’s abrupt retirement approximately one year prior.

In other recent news, Snowflake Inc. reported its financial results for the fourth quarter of fiscal year 2025, surpassing analyst expectations with an earnings per share (EPS) of $0.30, significantly higher than the forecasted $0.17. The company also exceeded revenue projections, reporting $986.8 million against an expected $956.22 million. Piper Sandler responded by raising its price target for Snowflake to $215, citing the company’s robust consumption strength and triple-digit growth in new products like Snowpark. Similarly, Cantor Fitzgerald increased its price target to $228, highlighting Snowflake’s significant fourth-quarter performance and potential growth from AI-driven products.

Jefferies maintained its Buy rating with a $220 target, expressing confidence in Snowflake’s fiscal year 2026 guidance, which forecasts 24% year-over-year revenue growth. Canaccord Genuity also reiterated a Buy rating with a $220 target, noting the company’s strong product revenue growth of 28% year-over-year. Snowflake’s CFO, Mike Scarpelli, indicated that the company’s net revenue retention rate was a healthy 126%, and the firm anticipates continued positive performance. The company’s strategic innovations and new product capabilities are expected to contribute to growth acceleration in the second half of the fiscal year.

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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