Snowflake stock price target raised to $260 from $220 at Stifel on strong growth

Published 28/08/2025, 12:18
Snowflake stock price target raised to $260 from $220 at Stifel on strong growth

Investing.com - Stifel raised its price target on Snowflake Inc. (NYSE:SNOW) to $260 from $220 while maintaining a Buy rating following the company’s strong second-quarter performance. The cloud data platform provider, currently trading at $200.39 with a market capitalization of $66.7 billion, has shown remarkable momentum with a 79.63% return over the past year.

The cloud data platform provider saw its shares jump approximately 13% in after-hours trading after reporting product revenue that exceeded expectations by 5%, showing acceleration from the previous quarter’s 4% beat. According to InvestingPro data, Snowflake maintains strong revenue growth at 27.5% year-over-year, though analysts note the stock is trading above its Fair Value.

Snowflake’s outperformance was driven by upside from newer products across all platform pillars, strong migration activity, and broad-based consumption strength, according to Stifel’s analysis.

The company’s operating margin came in approximately 300 basis points better than expected, with operating expenses growing at only about half the rate of revenue, similar to the previous quarter and well below a year ago, despite a meaningful acceleration in sales and marketing hiring.

Stifel noted that Snowflake’s sales and marketing hiring through the first half of fiscal 2026 is approximately 30% greater than the previous two fiscal years combined, suggesting the company is positioning itself for sustained growth and market share gains. For deeper insights into Snowflake’s growth strategy and comprehensive financial analysis, access the detailed Pro Research Report available exclusively on InvestingPro.

In other recent news, Snowflake Inc . has reported strong second-quarter fiscal 2026 earnings, leading several analyst firms to raise their price targets for the company. BTIG increased its price target to $276, noting Snowflake’s product revenue of $1,091 million, which marked a 31.5% year-over-year growth and exceeded both BTIG’s and the Street’s estimates. DA Davidson also raised its price target to $275, attributing the increase to a notable reacceleration in Snowflake’s product revenue, driven by large customer migrations. Evercore ISI lifted its target to $280, expecting revenue growth to accelerate into the high 20% range. Raymond James described the earnings report as a "beat and raise" quarter, adjusting its price target to $230. RBC Capital echoed the sentiment, citing a "very strong quarter" with a target increase to $275, highlighting a 32% product revenue growth. These developments underscore the positive reception of Snowflake’s recent financial performance among analysts.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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