Raymond James raises Snowflake target to $212, keeps Outperform

On Thursday, Raymond (NSE:RYMD) James adjusted its outlook on Snowflake Inc . (NYSE:SNOW) shares, increasing the price target to $212 from the previous $196 while maintaining an Outperform rating. The revision came in response to Snowflake’s first-quarter earnings for 2026, which surpassed expectations and prompted the company to raise its financial forecasts. According to InvestingPro data, the company, currently valued at $59.76 billion, has demonstrated strong revenue growth of 29.21% over the last twelve months.

The firm’s analysts remain optimistic about Snowflake’s future performance, citing the company’s positive quarterly report. The management’s enthusiasm regarding new opportunities and sustained momentum was highlighted, especially after the stock price saw a roughly 7% rise in after-hours trading. InvestingPro analysis indicates the stock is currently in overbought territory, with 8 additional key insights available to subscribers.

Snowflake’s Cortex, a suite of AI tools designed for customers to execute generative AI and deep analytics on their data, was particularly noted for its strong traction. The analysts believe that the momentum in product growth is likely to continue, which underpins the sustainable outlook for the company. With a gross profit margin of 66.72% and analysts forecasting profitability this year, the company shows promising financial metrics available in detail through InvestingPro’s comprehensive research reports.

Despite the positive assessment, Raymond James also expressed a degree of caution due to the potential risks associated with a weakening macroeconomic environment. However, they acknowledged that Snowflake’s management has yet to observe a decline in demand, and the company’s guidance does not currently reflect any macroeconomic headwinds.

The revised price target of $212 is based on the robust performance and promising prospects of Snowflake’s product offerings, coupled with the company’s ability to navigate the current economic landscape without any noticeable impact on demand.

In other recent news, Snowflake Inc. has reported impressive first-quarter results, drawing significant attention from analysts and investors. The company’s product revenue reached $996.8 million, marking a 26% year-over-year increase and surpassing both management’s and consensus estimates. This strong performance prompted several analyst firms to revise their price targets upwards. DA Davidson raised its target to $250, Evercore ISI to $232, BTIG to $235, Goldman Sachs to $230, and JPMorgan to $225, all maintaining positive ratings on the stock.

Snowflake also increased its fiscal year 2026 product revenue guidance to $4.325 billion, indicating a 25% growth, which reflects confidence in its continued momentum. Analysts have noted the positive impact of Snowflake’s artificial intelligence and machine learning products, which are gaining rapid adoption. The company closed two significant deals worth over $100 million each, contributing to its strong quarterly performance. Additionally, Snowflake’s operational margins and strategic partnerships, including collaborations with Anthropic and OpenAI, have reinforced its market position.

The upcoming Snowflake Summit and Analyst Day are expected to provide further insights into the company’s strategy and growth trajectory.

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