Snowflake stock price target raised to $310 by UBS on market consolidation

Investing.com - UBS raised its price target on Snowflake Inc. (NYSE:SNOW) to $310.00 from $285.00 on Wednesday, while maintaining a Buy rating on the cloud data platform company. The new target sits well within the current analyst range of $170-$440, with the stock trading at $245.59 and showing remarkable momentum with a 106.84% return over the past year.

The price target increase follows UBS analyst attendance at two recent industry events in New York City: a Snowflake customer event and a conference held by emerging competitor ClickHouse. According to InvestingPro data, Snowflake has maintained strong growth with 28.37% year-over-year revenue growth, supporting its $83.17B market capitalization.

UBS noted several key observations from the Snowflake event, including customer feedback that the data management market has consolidated around two main winners—Databricks and Snowflake—a shift from the competitive narrative that dominated 2023/2024.

While customers view Snowflake’s core data warehouse and Cortex offerings as expensive, this perception doesn’t appear to significantly impact demand, according to UBS. The firm also highlighted artificial intelligence as a demand driver for Snowflake, even though direct revenue impact remains difficult to quantify.

Regarding potential competition from ClickHouse, UBS concluded that while ClickHouse offers a high-performance solution for latency-sensitive workloads, these represent only a small portion of broader data analytics use cases, making the competitive threat to Snowflake "limited/manageable."

In other recent news, Snowflake has announced its latest earnings and revenue results. The company introduced Cortex AI for the financial services sector, offering a suite of AI capabilities to help financial institutions manage data ecosystems and deploy AI models while ensuring compliance. Additionally, Snowflake launched a new managed Model Context Protocol Server in public preview, enabling organizations to connect proprietary data with third-party data from partners like FactSet and Nasdaq eVestment.

In terms of company leadership, Snowflake appointed Stella Low as Chief Communications Officer, effective October 6. Low, who brings extensive experience from roles at HP, Apple, and Cisco, will oversee communications strategy as the company continues to grow. Snowflake also introduced its "Snowflake for Startups" program to support AI application development, providing startups with AI infrastructure and venture capital connections.

On the analyst front, Mizuho reiterated an Outperform rating with a $260 price target, while Jefferies maintained a Buy rating with a $270 price target, both highlighting product innovation and velocity. These developments reflect Snowflake’s ongoing focus on innovation and growth in the data cloud sector.

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