Snowflake stock price target raised to $275 from $250 at KeyBanc

Investing.com - KeyBanc raised its price target on Snowflake Inc. (NYSE:SNOW) to $275 from $250 while maintaining an Overweight rating following the company’s strong fiscal second-quarter performance. The stock, currently trading at $200.39 with a market capitalization of $66.7 billion, has delivered an impressive 79.63% return over the past year. InvestingPro analysis indicates the stock is trading near its Fair Value.

The cloud data platform reported a significant beat on quarterly results with product revenue acceleration of 6 percentage points. Net new product revenue reached $94 million, growing more than 130% year-over-year and 75% quarter-over-quarter. This momentum contributes to Snowflake’s robust revenue growth rate of 27.5%. For deeper insights into Snowflake’s financial health and growth prospects, check out the comprehensive analysis available on InvestingPro.

KeyBanc noted that Snowflake’s strength was broad-based across core analytics, migration activity, and all new products. The firm highlighted that strong migration activity aligned with their recent survey data and market checks.

While artificial intelligence revenue contribution remains small, Snowflake reported 6,100 customers are now using AI/ML features, up from 5,200 in the previous quarter. The company also indicated that AI influenced approximately 50% of new logo wins in the fiscal second quarter, with 25% of use cases deployed including some AI element. While currently operating at a loss with -$1.4 billion in net income, analysts tracked by InvestingPro forecast the company to achieve profitability with earnings per share of $1.22 in fiscal year 2026.

Snowflake raised its fiscal year 2026 product revenue guidance by $70 million and increased its operating margin forecast by 1 percentage point to 9%, while maintaining its adjusted free cash flow margin guidance at 25%.

In other recent news, Snowflake Inc . reported strong second-quarter results for fiscal 2026, surpassing expectations across various financial metrics. The company achieved total revenue of $1,145 million, exceeding consensus estimates of $1,088 million. Product revenue growth reached 32%, which was approximately 5% above Rosenblatt’s estimates. Snowflake’s customer revenue performance obligation grew by 33%, with a net revenue retention rate of 125%. These robust earnings results led several firms to raise their price targets for Snowflake. Bernstein increased its target to $221, maintaining a Market Perform rating. Cantor Fitzgerald raised its target to $275, noting this as Snowflake’s largest beat in absolute dollars as a public company. Rosenblatt set a new target of $250, while Stifel and DA Davidson both raised their targets to $260 and $275, respectively, each maintaining a Buy rating. These developments reflect the positive outlook from analysts following Snowflake’s impressive quarterly performance.

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