Snowflake stock price target raised to $210 at Stifel

Published 27/02/2025, 16:28
Snowflake stock price target raised to $210 at Stifel

On Thursday, Stifel analysts increased their price target on Snowflake Inc . (NYSE:SNOW) shares to $210 from the previous $187, while maintaining a Buy rating on the company. The stock, currently trading at $179.72, has seen a significant 43.8% gain over the past six months, despite a recent 10% pullback last week, according to InvestingPro data. The adjustment followed Snowflake’s robust fourth-quarter performance, which saw product revenue surpass expectations by 3-4% and operating margin (OM) improve by approximately 500 basis points. This improvement was attributed to a stable core business, significant contributions from new products, and effective cost management strategies implemented in the previous quarter. InvestingPro data shows the company maintains strong financial health with a current ratio of 1.88, indicating liquid assets well exceed short-term obligations.

Despite the first-quarter 2026 product revenue guidance of $955 million to $960 million being slightly below the consensus estimate of $961 million, Stifel emphasized the full-year 2026 product revenue forecast of $4.28 billion, which exceeds the consensus of $4.23 billion. This optimistic projection is based on the anticipation that revenue from new product features will complement the core business’s stability and contribute to increased growth in the second half of 2026.

In addition to the financial updates, Snowflake’s CFO, Mike Scarpelli, announced his retirement. While his departure is notable, he is leaving the company in a robust operational state, according to the Stifel analysts.

Looking ahead, the analysts expect Snowflake to sustain mid-to-upper 20% growth in product revenue and free cash flow (FCF), along with margin expansion in the coming years. The new price target of $210 is based on approximately 50 times the estimated CY26e FCF of $1.48 billion. With a market cap of $60.12 billion and impressive revenue growth of 30.28%, investors seeking deeper insights can access comprehensive valuation metrics and 8 additional ProTips through InvestingPro’s detailed research reports.

In other recent news, Snowflake Inc. has reported strong financial results, notably a 28% increase in product revenue, which exceeded expectations. Following these results, several analyst firms have adjusted their price targets for the company. RBC Capital Markets raised its target to $221, citing Snowflake’s success in attracting large customers and stable consumption patterns. Truist Securities increased its target to $225, highlighting the company’s robust outlook and strong strategic execution. Needham also raised its target to $215, supported by Snowflake’s consistent consumption trends and new product introductions.

KeyBanc Capital Markets lifted its price target to $220, noting the company’s impressive fourth-quarter performance and stable consumption patterns. The firm also mentioned Snowflake’s expanded partnership with Microsoft (NASDAQ:MSFT), which will enable the use of OpenAI models on the platform. TD Cowen maintained its price target at $210, expressing confidence in Snowflake’s stable growth trends and appealing valuation. Additionally, Snowflake announced a transition in its Chief Financial Officer role, with Mike Scarpelli planning to retire once a successor is appointed. These developments reflect the market’s positive outlook on Snowflake’s growth trajectory and strategic initiatives.

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