Snowflake stock price target raised to $285 from $275 at KeyBanc

Investing.com - KeyBanc raised its price target on Snowflake Inc. (NYSE:SNOW) to $285 from $275 while maintaining an Overweight rating on the stock. The new target sits just above the current price of $265, with the stock trading near its 52-week high of $280.67 after surging 71.62% year-to-date, according to InvestingPro data.

The price target increase follows what KeyBanc described as a "solid" third-quarter product revenue beat, though the firm noted it was likely about 1 percentage point below expectations. This performance comes amid Snowflake’s continued revenue growth of 28.37% over the last twelve months.

KeyBanc highlighted that bookings were "notably strong," increasing 50% year-over-year, which represents an acceleration from approximately 30% year-over-year growth in the first half of the fiscal year. The growth was supported by four nine-figure expansion deals.

The firm pointed out that Snowflake’s fourth-quarter product revenue guidance was seasonally stronger than the prior two years and approximately 2 percentage points above consensus, which KeyBanc believes likely reflects positive consumption and migration trends quarter-to-date.

KeyBanc remains positive on Snowflake benefiting from organizations’ AI initiatives and its broadening platform, seeing opportunity for reacceleration exiting fiscal year 2026. While currently not profitable with an EPS of -$4.15, InvestingPro data shows analysts expect profitability this fiscal year. Discover more insights and 8 additional ProTips in Snowflake’s comprehensive Pro Research Report, available with an InvestingPro subscription.

In other recent news, Snowflake Inc . reported its third-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $0.39, compared to the forecasted $0.31. The company also reported revenue of $1.21 billion, slightly above the projected $1.18 billion. Product revenue growth was noted at 29%, which exceeded consensus estimates by 2.3%, although it showed a slowdown from the previous quarter’s 31.5% growth. Despite this deceleration, Snowflake maintained a net expansion rate of 125% and delivered operating income 19% above consensus. However, the company’s free cash flow was 55% below expectations.

In the wake of these results, Goldman Sachs raised its price target for Snowflake to $275, maintaining a Buy rating due to AI momentum. RBC Capital reiterated its Outperform rating with a $300 price target, noting a "beat-and-raise quarter" despite the slight deceleration in product revenue. The firm highlighted an acceleration in revenue performance obligations (RPO), which contributed positively to the overall outlook. These developments reflect investor confidence and strategic positioning in the market.

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