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On Thursday, TD Cowen analysts adjusted their outlook on Snowflake Inc . (NYSE:SNOW) shares, increasing the price target from $210.00 to $230.00 while reiterating a Buy rating. Currently trading at $195.84 with a market capitalization of $66.14 billion, InvestingPro data indicates the stock is in overbought territory, suggesting investors might want to exercise caution at current levels. The firm’s analysts highlighted Snowflake’s strong first-quarter performance, noting product growth of 26%, which surpassed the Street’s expectation of 22%. This momentum aligns with the company’s impressive revenue growth of 29.21% over the last twelve months. Additionally, the company’s full-year revenue guidance was lifted modestly from 24% to 25%, with the margin guide remaining unchanged. According to InvestingPro’s analysis, Snowflake maintains a FAIR overall financial health score, with particularly strong momentum metrics.
Snowflake’s core consumption showed robust growth, and the uptick in new customer additions was attributed to effective go-to-market (GTM) strategies and the successful adoption of its Data Engineering products. Analysts at TD Cowen believe there is potential for Snowflake to continue exceeding expectations, with new products expected to contribute to further growth. They commended Snowflake for delivering impressive results in a challenging macroeconomic environment, reflecting the importance of core Data/Analytics projects and Snowflake’s expanding platform capabilities in Data Engineering and AI workloads.
The strong first-quarter results and the slight increase in the full-year guidance suggest that second-half estimates are now less risky, according to TD Cowen. Looking ahead, the analysts anticipate stable core growth trends and increasing momentum from new growth drivers in AI and machine learning. These factors are expected to support Snowflake’s continued strong performance, with a projected revenue scale of approximately $4 billion.
TD Cowen’s revised price target of $230 values Snowflake at roughly 55 times its estimated fiscal year 2026 enterprise value to free cash flow (EV/CY26E FCF). The firm’s analysts concluded their remarks by reiterating their Buy rating, signaling confidence in Snowflake’s future prospects and its ability to command a strong premium in the market. Analyst targets for the stock currently range from $115 to $440, reflecting diverse market opinions. For deeper insights into Snowflake’s valuation and growth prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports, available as part of their coverage of over 1,400 US stocks.
In other recent news, Snowflake Inc. has reported a strong start to its fiscal year, with product revenue growth exceeding expectations. The company’s product revenue increased by 26%, outperforming the consensus prediction of a 22% rise. This robust performance has led several firms to adjust their outlooks on Snowflake. RBC Capital Markets raised its price target to $236, while maintaining an Outperform rating, citing the company’s momentum and revised revenue guidance for FY/26. Similarly, Truist Securities increased its price target to $235, maintaining a Buy rating, and highlighted Snowflake’s strategic positioning in the AI sector. Monness Crespi Hardt also raised their 12-month price target to $245, emphasizing the company’s strong start to the fiscal year and promising forecasts for the upcoming quarters. Additionally, Stifel and Loop Capital Markets both raised their price targets to $220, with Stifel noting improvements in operating margins and Loop Capital expressing confidence in Snowflake’s long-term growth prospects. These developments reflect the market’s positive reception of Snowflake’s financial performance and future potential.
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