Stock market today: S&P 500 extends monthly win streak despite Nvidia-led stumble
Investing.com - UBS raised its price target on Snowflake Inc. (NYSE:SNOW) to $285 from $250 while maintaining a Buy rating on the stock. The cloud data company, currently trading at $200.39 with a market capitalization of $66.7 billion, appears overvalued according to InvestingPro Fair Value metrics.
The price target increase follows Snowflake’s second-quarter results that exceeded expectations, with product revenue growth of 32%, above the anticipated 29-30% range and representing a 5-point sequential acceleration. The company has demonstrated strong momentum, with shares surging nearly 80% over the past year and posting a 30% gain year-to-date.
Snowflake’s guidance for the third quarter suggests continued growth of 30-31%, assuming normal performance patterns, according to UBS.
The firm noted that strong results from MongoDB and Palantir, along with healthy momentum at Databricks, indicate a robust data software investment cycle that UBS believes has staying power.
Despite Snowflake trading at calendar year 2026 estimated multiples of 13.9 times revenue and 54 times free cash flow, UBS maintains its Buy rating on the stock.
In other recent news, Snowflake Inc . reported robust financial performance for its fiscal second quarter of 2025, exceeding expectations with earnings per share of $0.38, compared to the forecasted $0.27. The company also outperformed revenue projections, reporting $1.14 billion against an anticipated $1.09 billion. This strong performance has led several analyst firms to raise their price targets for Snowflake. Oppenheimer increased its target to $275, citing strong second-quarter results and maintaining an Outperform rating. Mizuho also raised its target to $260, describing the earnings as "outstanding" and retaining an Outperform rating. Truist Securities adjusted its target to $270, highlighting a significant acceleration in product revenue. Similarly, Jefferies set its target at $270, following a record $53 million revenue beat and a notable increase in product revenue growth. These developments reflect a positive sentiment from analysts regarding Snowflake’s recent performance and potential.
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