Snowflake stock price target raised to $210 at TD Cowen

On Friday, TD Cowen maintained a positive outlook on Snowflake Inc . (NYSE: NYSE:SNOW), increasing the price target from $190.00 to $210.00 while reiterating a Buy rating. The stock, currently trading at $183.41, has shown strong momentum with a 37% gain over the past six months. The firm anticipates a strong performance in the fourth quarter, ahead of Snowflake’s earnings report scheduled for February 26, 2025. According to InvestingPro, analysts’ price targets for the stock range from $115 to $235, reflecting diverse market expectations.

Analysts at TD Cowen have conducted partner checks that suggest consistent growth in core SQL workloads and rising engagement with new products, notably Cortex AI Search. This aligns with the company’s impressive 30.28% revenue growth over the last twelve months and strong gross margin of 67.33%. They also observed a favorable market response to Iceberg and enhancements in go-to-market strategies, particularly in terms of engaging with more technology users.

TD Cowen expects Snowflake to report solid fourth-quarter outperformance and believes there is potential for the full-year 2026 estimates to increase. The firm predicts a return to trailing twelve-month average upside levels of approximately 3.5% versus the higher end of the company’s guidance, which is around 23%. They note that the quarter likely included additional holiday and out-of-office seasonality.

The street’s current projections for fiscal year 2026 suggest a 22% growth, which TD Cowen deems conservative. Their own projections are slightly higher at 23%, indicating that there may be room for these numbers to rise. Additionally, the analysts anticipate that management will guide towards a resumption of margin expansion.

In conclusion, TD Cowen’s stance is bolstered by partner feedback that points to stable growth in Snowflake’s core SQL workloads, increasing adoption of AI and non-SQL Data Engineering workloads, and improved go-to-market tactics. With a market capitalization of $61.07 billion, Snowflake commands a premium valuation. The new price target of $210 represents roughly 48 times the expected enterprise value to free cash flow for the calendar year 2026. For deeper insights into Snowflake’s valuation and growth metrics, including exclusive ProTips and comprehensive financial analysis, visit InvestingPro.

In other recent news, Snowflake Inc. has been the focus of several analyst updates and projections. KeyBanc Capital Markets maintained an Overweight rating with a $210 price target, expressing optimism about Snowflake’s upcoming fourth-quarter earnings report. The firm highlighted the company’s new product offerings, such as data engineering, which has already surpassed $200 million in annual recurring revenue, and anticipated margin improvements. Meanwhile, BofA Securities raised its price target to $205, maintaining a Neutral rating, citing Snowflake’s growth and competitive challenges, particularly with Databricks. UBS also increased its price target to $190, retaining a Neutral stance, based on revenue multiples and Snowflake’s position within its peer group of high-growth software companies.

Truist Securities reaffirmed its Buy rating with a $210 target, expecting Snowflake to exceed expectations due to increased consumption and new products like Snowpark and Cortex. They foresee potential operating margin expansion in fiscal year 2026. Wolfe Research upgraded Snowflake’s rating to Outperform, setting a new price target at $235, due to improved consumption trends and favorable competitive conditions. The firm anticipates a solid fourth quarter with growth around 28% and sees a positive outlook for fiscal year 2026 with projected product revenue growth of 23%. These developments reflect a broad spectrum of analyst perspectives on Snowflake’s financial health and market position.

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