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On Friday, TD Cowen reaffirmed its Buy rating and a price target of $210.00 on Snowflake Inc . (NYSE: NYSE:SNOW), ahead of the company’s first-quarter earnings report scheduled for May 23. The stock, currently trading at $183.38, has shown strong momentum with a 45.26% gain over the past six months and is approaching its 52-week high of $194.40, according to InvestingPro data. Analysts at TD Cowen expressed optimism about the company’s growth momentum, citing positive feedback from partner checks. These checks highlighted consistent growth in core SQL workloads, increased adoption of new products such as Data Engineering and Cortex AI, and a lack of significant macroeconomic effects on demand and consumption patterns.
The firm anticipates a robust performance in the first quarter and suggests that there may be potential for Snowflake’s fiscal year 2026 projections to rise modestly. Analysts expect an upside of around 3% compared to the higher end of the company’s guidance, which is approximately 22%, taking into account a roughly 1% impact from the leap year comparison. With a robust gross profit margin of 66.72% and strong revenue growth of 29.21% over the last twelve months, InvestingPro analysis indicates analysts expect the company to achieve profitability this year. This outlook is supported by the belief that investments in Data and Analytics will remain a high priority for businesses, despite the economic uncertainty experienced in April.
For fiscal year 2026, TD Cowen sees the possibility for Snowflake’s estimates to increase, with the current product guide at a 24% growth rate. This expectation is based on the stabilization of core SQL and Analytics growth, along with a faster adoption rate for emerging offerings like Data Engineering and Cortex AI, which could contribute to a reacceleration of growth in the second half of the year.
The analysts’ confidence in Snowflake is reflected in the reiterated Buy rating and a price target of $210, which implies a valuation of approximately 49 times the company’s expected enterprise value to free cash flow for the calendar year 2026. The upcoming quarterly earnings report will provide further insight into Snowflake’s performance and its trajectory towards these expectations. Based on current InvestingPro Fair Value calculations, the stock appears slightly overvalued at its current market capitalization of $61.18 billion. Subscribers can access 12 additional ProTips and a comprehensive Pro Research Report for deeper insights into Snowflake’s valuation and growth prospects.
In other recent news, Snowflake Inc. reported several developments that are of interest to investors. Snowflake has achieved the Department of Defense Impact Level 5 (IL5) Provisional Authorization for its operations on AWS GovCloud, enabling secure data solutions for DOD and related agencies. This authorization supports national security objectives and facilitates data cloud migration for the DOD. Additionally, Snowflake has announced enhancements to its Apache Iceberg support, integrating performance and security features to improve data management and analytics capabilities. This initiative underscores Snowflake’s commitment to open data ecosystems and interoperability.
In terms of analyst ratings, KeyBanc Capital Markets maintained an Overweight rating with a $192 target, citing mixed customer sentiment but stable revenue estimates. BTIG reaffirmed a Buy rating with a $220 target, expressing confidence in Snowflake’s strategic positioning and product revenue growth prospects. Meanwhile, Mizuho (NYSE:MFG) adjusted its price target from $205 to $190 while maintaining an Outperform rating, noting Snowflake’s robust consumption activity and attractive valuation. These recent developments highlight Snowflake’s strategic advancements and the varied perspectives of analysts regarding its future performance.
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