U.S. natural gas prices upside likely in 2026 - Morgan Stanley
On Thursday, Needham analysts increased their price target on Snowflake Inc . (NYSE: NYSE:SNOW) shares from $215.00 to $230.00 while maintaining a Buy rating. The adjustment follows Snowflake’s report of a strong financial quarter, with Product Revenue surpassing guidance by 3.8%. This performance was highlighted as significant, especially after management previously described a 3% beat as material due to the company’s size. According to InvestingPro data, Snowflake, currently valued at nearly $60 billion, is trading near its Fair Value, with analyst targets ranging from $115 to $440.
Snowflake’s management also provided guidance for the second quarter that was above analyst expectations and raised the full-year outlook. This indicates their confidence in the current Consumption environment, the effectiveness of go-to-market changes, and the traction of new products. With impressive revenue growth of 29.2% and a healthy current ratio of 1.78, the company maintains strong financial flexibility. Analysts at Needham pointed out that during the fourth-quarter fiscal year 2025 earnings call, Snowflake’s management mentioned a more robust Professional Services and Systems Engineering team, which has specialized to target additional use-cases.
The company’s accelerated headcount growth in both Cost of Goods Sold (COGS) and Sales & Marketing in the first quarter of fiscal year 2026 was seen as a sign that Snowflake is setting the stage for reaccelerating future Product Revenue growth. The analysts at Needham believe that Snowflake will continue to exceed expectations against the updated fiscal year 2026 Product Revenue guide, based on these strategic investments in personnel.
In other recent news, Snowflake Inc. reported impressive first-quarter results for fiscal year 2026, which led to a series of analyst upgrades. The company’s product revenue reached $996.8 million, marking a 26% year-over-year increase, surpassing prior guidance and expectations. This strong performance prompted Snowflake to raise its full-year product revenue forecast to $4,325 million. DA Davidson, Evercore ISI, and BTIG all raised their price targets to $250, $232, and $235, respectively, while maintaining favorable ratings. Goldman Sachs also increased its target to $230, citing confidence in Snowflake’s financial performance and future prospects. Analysts highlighted the rapid adoption of Snowflake’s AI and machine learning products as a key driver of growth. Raymond (NSE:RYMD) James raised its target to $212, noting the company’s robust product growth and positive quarterly report. Snowflake’s strategic partnerships and expanding customer base further support its growth trajectory in the competitive software industry.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.