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Investing.com - TD Cowen has reiterated its Buy rating and $240.00 price target on Snowflake Inc . (NYSE:SNOW), currently trading at $194.62, ahead of the company’s second-quarter earnings report scheduled for August 27. The stock has shown strong momentum with a 26.16% gain year-to-date, according to InvestingPro data.
The research firm cited "positive checks" in its analysis, noting core consumption stability and continued traction with Data Engineering workloads. TD Cowen also highlighted emerging momentum with Cortex AI and positive changes from new enterprise sales strategies. While InvestingPro data shows the company isn’t currently profitable, analysts expect profitability this year, with forecasted earnings per share of $1.22.
The firm believes Snowflake’s unified data platform positioning is helping the company capture more AI-related market share. Analysts expect Snowflake to deliver "another solid beat and raise" in its upcoming earnings report, alongside growth re-acceleration compared to the first quarter.
TD Cowen anticipates Snowflake will exceed its second-quarter guidance of 25% growth, which would represent a notable acceleration from the 26% growth reported in the first quarter. The firm’s checks indicate strong spending conditions for Snowflake across core SQL workloads and emerging AI workloads.
The research firm suggests continued execution should help drive premium valuations for Snowflake, which currently trades at approximately 46 times enterprise value to calendar year 2026 estimated free cash flow, against what TD Cowen describes as a "Rule of 50+" framework.
In other recent news, Snowflake Inc. is preparing for its second-quarter fiscal 2026 earnings report, with analysts offering varied perspectives. Guggenheim has maintained a Neutral rating, indicating that while the company’s quarterly targets seem achievable, surpassing consensus expectations may be more difficult than in previous quarters. KeyBanc Capital Markets has reiterated its Overweight rating with a $250 price target, highlighting positive developments in data engineering and on-premises data warehouse migration. JMP Securities also maintains a Market Outperform rating, supported by positive industry feedback and customer satisfaction.
Meanwhile, UBS has adjusted its price target for Snowflake to $250 from $265, retaining a Buy rating, following consultations with partners and customers about demand trends and future outlook. In addition to these analyst insights, Snowflake has made a strategic investment in Hightouch, a data and AI agent platform for marketers. This investment, alongside Capital One (NYSE:COF) Ventures, aims to advance Hightouch’s AI capabilities in marketing. These developments reflect a dynamic period for Snowflake as it continues to navigate growth and strategic partnerships.
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