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On Thursday, TD Cowen analysts maintained their Buy rating on Snowflake Inc . (NYSE:SNOW) with a steadfast price target of $210. The endorsement comes after the cloud-based data-warehousing company reported robust fourth-quarter results, surpassing expectations with a product growth rate of 28%, which exceeded the Street’s projection of 24%. The company’s strong performance builds on its impressive 30.3% revenue growth over the last twelve months, according to InvestingPro data. Looking forward, Snowflake’s guidance for fiscal year 2026 anticipates a growth rate of 24%, slightly ahead of the Street’s forecast of 23%.
TD Cowen’s analysis highlighted the company’s stable growth trends in core consumption and positive impacts from its Iceberg initiative. Moreover, Snowflake’s data engineering and AI/machine learning (AI/ML) segments are gaining momentum. Management is optimistic about the continuation of these trends, with an expected acceleration in the second half of the year driven by new product offerings. InvestingPro data shows the company maintains a healthy financial position with a current ratio of 1.88, indicating strong liquidity to support its growth initiatives. Additionally, Snowflake has announced a transition in its Chief Financial Officer role.
The analysts expressed confidence in Snowflake’s consistent growth patterns, which are supported by legacy workload migrations to the cloud, a rising rate of new customer acquisitions, and increasing adoption of new products. With the company’s enterprise value to forward-looking free cash flow (EV/CY26E FCF) ratio at approximately 42 times, TD Cowen finds the valuation appealing. This is especially so when compared to the Rule of 50+ framework, which is often used for scaling companies.
In conclusion, Snowflake’s strong fourth-quarter performance and forward-looking guidance, along with its stable core consumption and growing traction in new product areas, have reaffirmed TD Cowen’s positive outlook on the company. The maintained Buy rating and $210 price target reflect the analysts’ confidence in Snowflake’s growth trajectory and valuation.
In other recent news, Snowflake Inc. has received multiple updates from analysts following its impressive fourth-quarter earnings and future projections. Evercore ISI raised its price target for Snowflake to $230, citing product revenue growth of 28% year-over-year, which surpassed expectations. Similarly, Loop Capital increased its target to $215, noting a 32% increase in remaining performance obligations and effective sales execution. KeyBanc also lifted its price target to $220, acknowledging Snowflake’s stable consumption patterns and successful adoption of AI features.
In addition, Truist Securities revised its price target to $225, highlighting Snowflake’s sustained product growth momentum. Needham adjusted its target to $215, emphasizing the company’s confident revenue guidance for fiscal year 2026, which is above sell-side forecasts. Snowflake’s management has projected a 24% growth in product revenue and aims to enhance profitability with an 8% non-GAAP operating margin target.
The company also announced an expanded partnership with Microsoft (NASDAQ:MSFT), enabling the integration of OpenAI models within Microsoft platforms. Despite CFO Mike Scarpelli’s upcoming retirement, analysts remain optimistic about Snowflake’s growth trajectory and market strategy. These developments reflect a positive outlook from various firms, underscoring Snowflake’s strategic execution and market positioning.
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