Snowflake stock price target raised to $275 from $240 at TD Cowen

Investing.com - TD Cowen raised its price target on Snowflake Inc. (NYSE:SNOW) to $275 from $240 while maintaining a Buy rating on the stock. The cloud data platform, currently trading at $232.31 with a market capitalization of $77.26 billion, appears overvalued according to InvestingPro analysis.

The firm cited Snowflake’s second-quarter growth acceleration to 32%, up from 26% in the first quarter, with improvements across revenues, current remaining performance obligations (cRPO), net revenue retention (NRR), customers with over $1 million in spending, and sales and marketing headcount. The company has maintained strong momentum, delivering a 79.6% return over the past year and 29.8% year-to-date, according to InvestingPro data.

TD Cowen attributed these results to Snowflake’s faster product innovation, increased sales efficiencies, and broader platform adoption, noting that data and analytics continue to be high spending priorities for customers. While currently unprofitable, analysts tracked by InvestingPro expect the company to turn profitable this year, with projected earnings of $1.22 per share.

The research firm observed that while Snowflake’s Cortex AI offerings currently make a small direct revenue contribution, they are helping convince customers to make broader platform commitments, potentially becoming a growing source of consumption as Snowflake positions itself as a center of gravity for data fueling AI applications.

TD Cowen concluded that Snowflake is "firing on all cylinders" and demonstrating it is a wallet share winner in the current AI cycle, justifying what it considers a premium valuation of approximately 65 times enterprise value to calendar year 2026 estimated free cash flow.

In other recent news, Snowflake Inc . reported a robust fiscal second-quarter performance, leading to multiple analysts raising their price targets for the company. KeyBanc increased its price target to $275, citing a 6 percentage point acceleration in product revenue and a net new product revenue of $94 million, growing over 130% year-over-year. Bernstein also raised its price target to $221, noting better-than-expected earnings and a 33% growth in customer revenue performance obligation. Cantor Fitzgerald set its price target at $275, highlighting Snowflake’s largest beat in absolute dollars as a public company, exceeding guidance by $50 million. Rosenblatt adjusted its target to $250, recognizing a 32% growth in product revenue and total revenue surpassing both its forecast and consensus estimates. Stifel raised its price target to $260, pointing to a 5% product revenue beat and strong growth. These developments reflect the positive reception of Snowflake’s quarterly results across the analyst community.

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