Stifel maintains Snowflake stock Buy rating and $210 target

Published 19/05/2025, 14:18
Stifel maintains Snowflake stock Buy rating and $210 target

On Monday, Stifel analysts maintained their Buy rating and $210.00 price target for Snowflake Inc . (NYSE: NYSE:SNOW), expressing confidence in the company’s performance. Trading near its 52-week high of $194.40 with a market capitalization of $61 billion, the stock has shown strong momentum with a 40% gain over the past six months. The firm anticipates a solid quarter for Snowflake, supported by stable consumption trends among its March quarter peers and satisfactory results from major cloud service providers, known as hyperscalers.

Stifel’s analysts highlighted Snowflake’s consistent track record of surpassing Product revenue guidance and consensus by approximately 4% throughout the fiscal year 2025. With impressive revenue growth of 29.2% in the last twelve months, they noted that due to more conservative guidance set by management for the fiscal year, they expect a more modest upside in the range of 2-3% for the upcoming quarter.According to InvestingPro, while Snowflake isn’t currently profitable, analysts predict the company will achieve profitability this year. InvestingPro offers 11 additional key insights about Snowflake’s financial health and market position.

The analysts also pointed to the potential for Snowflake’s newer product features to contribute significantly to the company’s growth in the second half of 2026. While this might cap the upside potential for the current second-quarter consensus revenue estimate of around $1,013 million, it is expected to provide the company with room to consider larger revisions for the second half of the year.

Stifel’s outlook for Snowflake is positive, with the expectation that the combination of a stable core business, the incremental contribution from new products, and operational efficiency will enable the company to sustain mid-to-upper 20% growth in product revenue and free cash flow, along with margin expansion in the coming years.

In other recent news, Snowflake Inc. has secured the Department of Defense (DOD) Impact Level 5 (IL5) Provisional Authorization for operations on AWS GovCloud, enabling the company to provide secure solutions for managing Controlled Unclassified Information for the DOD and related agencies. This development allows various military services and federal agencies to utilize Snowflake’s data storage and analytics capabilities. In anticipation of their upcoming earnings report, TD Cowen reaffirmed a Buy rating with a $210 price target, expressing optimism about Snowflake’s growth momentum and potential for fiscal year 2026 projections to rise modestly. Similarly, BTIG maintained a Buy rating with a $220 target, citing Snowflake’s strategic positioning and innovative products as key growth drivers.

KeyBanc also maintained an Overweight rating with a $192 target, noting a mixed outlook from a recent survey of Snowflake customers and partners, which highlighted increased adoption of Snowpark but also concerns over spending cuts due to macroeconomic conditions. Meanwhile, Mizuho (NYSE:MFG) reduced its price target to $190 from $205 but kept an Outperform rating, emphasizing Snowflake’s robust consumption activity and potential for additional revenue streams. Despite the lowered price target, Mizuho remains optimistic about Snowflake’s growth prospects, citing its minimal exposure to federal markets as a positive factor. These recent developments reflect a generally positive sentiment among analysts regarding Snowflake’s future performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.