Truist maintains Snowflake stock Buy rating, $210 target

On Tuesday, Truist Securities expressed continued confidence in Snowflake Inc . (NYSE:SNOW), maintaining a Buy rating and a price target of $210.00. Trading at $190.29 with a market capitalization of $63 billion, InvestingPro analysis indicates the stock is slightly overvalued at current levels. The firm’s stance is backed by several factors that suggest an optimistic future for the cloud-based data warehousing company.

Analysts at Truist Securities highlighted the potential for Snowflake to exceed expectations, driven by an increase in consumption and the introduction of new products. With impressive revenue growth of 30.28% and a robust gross profit margin of 67.33%, the company has demonstrated strong execution. They specifically mentioned Snowpark, Dynamic Tables, and Cortex as innovations that could contribute to a "beat-and-raise cadence," signaling periods where a company’s financial performance surpasses analyst predictions and prompts an upward revision of future expectations.

Truist Securities also anticipates that Snowflake’s operating margins may expand in fiscal year 2026. This forecast is based on the premise that the elevated investment levels observed in FY25 are likely to normalize, leading to improved profitability.

The firm is looking ahead to Snowflake’s earnings report, scheduled for release on February 26th after market close. While not currently profitable, InvestingPro data shows analysts expect the company to achieve profitability this year. Truist Securities expects the results to present a positive surprise compared to Wall Street’s forecasts, suggesting a robust performance by the company. For deeper insights into Snowflake’s financial health and detailed analysis, investors can access the comprehensive Pro Research Report available on InvestingPro.

Snowflake’s growth trajectory is further supported by the expanding adoption of artificial intelligence (AI) and the company’s ability to secure large deals, which are seen as catalysts for sustained revenue growth and margin improvements. The combination of new products, AI integration, and strategic deals positions Snowflake favorably in the eyes of Truist Securities analysts.

In other recent news, Snowflake Inc. has been the subject of various analyst upgrades and price target adjustments. Wolfe Research upgraded Snowflake’s stock rating to Outperform, citing improved core consumption trends and a more favorable competitive environment. The firm projects a solid fourth quarter with growth around 28% and anticipates a fiscal year 2026 product revenue guidance suggesting year-over-year growth of 23%.

KeyBanc Capital Markets maintained its Overweight rating on Snowflake, following a comprehensive quarterly survey of 16 Snowflake customers and partners. The survey revealed increasing interest in Cortex, Snowflake’s data and machine learning platform, and a clearer understanding of plans for Iceberg, another of Snowflake’s offerings.

Mizuho (NYSE:MFG) Securities raised its price target on Snowflake shares to $205, noting large transactions and improved adoption of Snowpark, Snowflake’s developer framework. Evercore ISI analyst Kirk Materne also increased the price target for Snowflake shares to $200, anticipating a moderate outperformance in its fourth-quarter product revenue.

Wedbush Securities raised its price target from $190.00 to $210.00, highlighting Snowflake’s stronger product demand and continuous innovation, particularly in artificial intelligence (AI) and machine learning (ML) capabilities. The firm’s easy-to-use AI products continue to stand out in a crowded field, with more enterprises looking to leverage AI to ingest and utilize growing data volumes effectively.

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