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On Thursday, Cantor Fitzgerald analyst Thomas Blakey updated Snowflake Inc . (NYSE:SNOW) with a new price target, raising it significantly from $183.00 to $242.00. The firm has maintained an Overweight rating on the company’s shares. Currently trading at $179.12 with a market capitalization of nearly $60 billion, Snowflake has demonstrated strong momentum with a 16% gain year-to-date. Blakey’s optimism is rooted in the belief that Snowflake will persist in outperforming expectations and demonstrate increased efficiency within its business model. According to InvestingPro data, the company maintains impressive revenue growth of 29.2% and a healthy gross margin of 66.7%.
The analyst expressed a positive outlook on Snowflake’s future performance, citing a strategy that consistently surpasses financial forecasts and presents a robust growth algorithm. While the company is not currently profitable, InvestingPro analysis indicates analysts expect profitability this year, with an EPS forecast of $1.28 for the upcoming fiscal year. The revised price target reflects a shift in the target multiple used to evaluate the company’s stock value. Previously, the multiple was set slightly above its one-year average, and the new valuation is adjusted to be modestly above the three-year average.
Blakey’s confidence in Snowflake is based on the company’s ability to execute a "beat-and-raise" approach, which suggests the company will continue to report earnings and revenue that exceed analyst predictions and then raise future guidance. This method has been a key factor in the analyst’s positive stance on the stock.
The adjustment in Snowflake’s price target is also justified by a change in the enterprise value to calendar year 2026 revenue multiple (EV/C26E revenue). The previous multiple stood at 12 times, slightly above the one-year average, whereas the new multiple is set at 16 times, which is slightly above the three-year average. This shift indicates a higher level of confidence in Snowflake’s growth trajectory.
Cantor Fitzgerald’s reiteration of the Overweight rating and the increase in the price target to $242 from $183 is driven by this adjusted valuation method and the firm’s belief in Snowflake’s potential for continued financial success and market performance.
In other recent news, Snowflake Inc. reported strong first-quarter results for fiscal year 2026, with product revenue reaching $996.8 million, marking a 26% year-over-year increase. This performance exceeded management’s guidance and led to an upward revision of the full-year product revenue forecast to $4,325 million, indicating a 25% growth. Analysts from several firms, including Needham, Raymond (NSE:RYMD) James, DA Davidson, Evercore ISI, and BTIG, have responded positively to these developments by raising their price targets for Snowflake. Needham increased its target to $230, Raymond James to $212, DA Davidson to $250, Evercore ISI to $232, and BTIG to $235, all maintaining positive ratings. The analysts cite Snowflake’s robust financial performance, ongoing product growth, and successful adoption of artificial intelligence tools as key factors. Additionally, the company secured significant contracts, including two deals over $100 million, contributing to its strong outlook. Snowflake’s management has expressed confidence in navigating the current economic landscape, with no noticeable impact on demand. The increased focus on AI and cloud data analytics is expected to further support Snowflake’s growth trajectory.
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