Street Calls of the Week
On Tuesday, Rosenblatt Securities adjusted its outlook for Snowflake Inc . (NYSE: NYSE:SNOW), increasing the price target on the company’s shares to $205 from the previous target of $186. The firm continues to endorse Snowflake with a Buy rating. Currently trading at $170.92, InvestingPro data shows the stock has experienced an 11.3% decline over the past week, though it remains up nearly 48% over the last six months.
The adjustment comes ahead of Snowflake’s fourth quarter and full fiscal year 2025 earnings report, which is scheduled to be released after the market closes on February 26th. With a market capitalization of $56.4 billion and a robust current ratio of 1.88, InvestingPro analysis indicates the company maintains strong liquidity despite operating at a loss over the last twelve months. Analysts at Rosenblatt cite several factors contributing to their positive stance on the cloud-based data warehousing company, including a stabilization in Cloud Service Provider growth and ongoing cloud migrations.
Additionally, the introduction of new products and the implementation of enterprise AI projects are seen as driving forces that will likely bolster Snowflake’s product revenue growth. Rosenblatt anticipates the company to either meet or slightly surpass their projected organic growth rate of approximately 23% year-over-year for the fourth quarter, which aligns with the 29% growth rate forecasted for the full fiscal year.
The firm’s decision to raise Snowflake’s price target also reflects a forward-looking valuation approach, as they shift their focus to the fiscal year 2027. Despite the increase in the price target, Rosenblatt has opted to keep its earnings forecast unchanged while it previews expectations for the upcoming earnings report.
Investors and market watchers will closely monitor Snowflake’s performance as it presents its latest financial results, which could potentially validate Rosenblatt’s confidence in the company’s growth trajectory and market position. For deeper insights into Snowflake’s financial health and growth prospects, InvestingPro subscribers can access comprehensive analysis, including 8 additional ProTips and the detailed Pro Research Report, which provides actionable intelligence for smarter investment decisions.
In other recent news, Snowflake Inc. has seen several adjustments in its stock price targets by various analyst firms. Canaccord Genuity raised its price target to $220, maintaining a Buy rating, citing improved consumption trends and new customer acquisitions, alongside strong Free Cash Flow margins projected at 26% for fiscal year 2025. Citi also increased its price target to $230, with expectations of a 3% beat in fourth-quarter product revenue, translating to a 28% year-over-year increase. DA Davidson reiterated a Buy rating with a $200 target, highlighting Snowflake’s momentum in its core data warehouse product and AI/ML releases. Bernstein adjusted its price target to $161, noting stabilization in key business metrics such as Net Revenue Retention and Current Remaining Performance Obligations, although it retained a Market Perform rating due to concerns about long-term growth drivers. TD Cowen raised its target to $210, expecting strong fourth-quarter performance and potential increases in full-year 2026 estimates, driven by consistent growth in core SQL workloads and new product engagement. These developments come as Snowflake prepares for its upcoming fourth-quarter earnings report, which will be closely watched by investors for further insights into the company’s performance and growth trajectory.
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