Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - UBS has lowered its price target on Snowflake Inc. (NYSE:SNOW) to $250.00 from $265.00 while maintaining a Buy rating ahead of the company’s second-quarter earnings report. Currently trading at $196.16 with a market cap of $65.5 billion, InvestingPro data shows the stock has experienced an 8.3% decline over the past week, despite posting an impressive 52% return over the last year.
The price target adjustment comes after UBS analyst Karl Keirstead consulted with nine partners and customers to assess Snowflake’s recent demand trends and second-half outlook.
UBS found that most customers continue to prioritize investments in data foundations and analytics, creating favorable conditions for Snowflake alongside competitors like Databricks, Palantir, hyperscalers, and Salesforce’s Data Cloud.
The firm maintains its view that Snowflake’s current valuation multiples of 12x/46x CY26E revenues/free cash flow appear reasonable if the company’s growth trends toward 30%, the data investment cycle continues, and margins improve.
Snowflake is scheduled to release its second-quarter earnings results on Wednesday, August 27, 2025.
In other recent news, Snowflake has been actively involved in several strategic developments. The company participated in a strategic investment in Hightouch, alongside Capital One Ventures, to support the development of AI agents for marketing. This investment is part of Hightouch’s extended Series C funding round. Snowflake also announced a partnership with Bloomreach to enhance marketing data activation, allowing businesses to connect customer data stored in Snowflake with Bloomreach’s AI-powered marketing solutions. In a separate funding round, Snowflake invested in AI startup Reka AI, contributing to a $110 million funding round that raised Reka AI’s valuation to over $1 billion.
Additionally, Citizens JMP raised its price target for Snowflake to $260 from $245, maintaining a Market Outperform rating, reflecting confidence in the company’s prospects. Snowflake has further strengthened its leadership team by appointing Chris Niederman as Senior Vice President of Alliances & Channels. Niederman, with over 30 years of experience, will oversee Snowflake’s global channel and partner ecosystem. These developments highlight Snowflake’s ongoing efforts to expand its influence in the AI and data cloud sectors.
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