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On Wednesday, UBS analyst Karl Keirstead increased the price target on Snowflake Inc . (NYSE: NYSE:SNOW) shares to $190 from the previous $155, while keeping a Neutral rating on the stock. With shares currently trading at $187.18 and showing a strong 46.69% return over the past six months, Keirstead’s new price target reflects a revision based on revenue multiples, citing the stock’s current valuation within its peer group of high-growth software companies.
According to Keirstead, Snowflake’s shares are trading at 12.4 times revenue and 45 times free cash flow (FCF) on calendar year 2026/fiscal year 2027 estimates. These metrics position the company near the midpoint of valuations for similar high-growth software firms. InvestingPro analysis indicates the stock is slightly overvalued at current levels, with the company maintaining a healthy gross profit margin of 67.33%. The analyst believes that a 45 times FCF multiple is reasonable for a company with mid-20% growth in the data software sector.
The decision to raise the price target to $190 is based on an increased revenue multiple of 12.5 times, up from the previous multiple of around 10 times, applied to the company’s CY26/FY27 estimates. With current revenue growth at 30.28% and a market capitalization of $62.54 billion, the adjustment aims to align Snowflake’s valuation with that of its peer group, following a re-rating in the market.Get deeper insights into Snowflake’s valuation metrics and access comprehensive financial analysis with InvestingPro, which offers exclusive ProTips and detailed Fair Value calculations for over 1,400 US stocks.
Keirstead’s commentary indicates a view that the revised price target is justified by Snowflake’s growth prospects and current market positioning. The maintenance of a Neutral rating suggests that, while the price target has been raised, UBS’s stance on the stock remains unchanged.
Snowflake Inc., known for its cloud-based data warehousing solutions, has been a part of the rapidly expanding market for cloud services and data management. The company’s financial performance and future growth potential are key factors that analysts consider when issuing ratings and setting price targets.
Investors in Snowflake Inc. will now be watching the stock’s performance in relation to the new price target set by UBS, as well as the company’s progress towards achieving its forecasted revenue and free cash flow figures for the coming years.
In other recent news, Snowflake Inc. has been the focus of several analyst reports highlighting its financial performance and future prospects. Truist Securities maintained a Buy rating with a price target of $210, citing optimism due to new product introductions and potential margin expansion by fiscal year 2026. Wolfe Research upgraded Snowflake’s rating to Outperform, setting a price target of $235, driven by improved consumption trends and a favorable competitive environment. KeyBanc Capital Markets reiterated an Overweight rating with a $210 price target, based on a survey of customers and partners showing interest in new products like Cortex and Iceberg.
Mizuho (NYSE:MFG) Securities raised its price target for Snowflake to $205, maintaining an Outperform rating, supported by positive partner checks and an uptick in Snowpark adoption. Evercore ISI also increased its price target to $200, projecting a moderate outperformance in fourth-quarter product revenue, slightly above management’s guidance. The firm anticipates that Snowflake’s margins could improve in FY26, suggesting a potential for revenue growth.
These recent developments reflect a consistent belief among analysts in Snowflake’s growth trajectory, bolstered by product innovation and strategic market positioning. The company’s ability to secure large deals and integrate artificial intelligence is seen as a catalyst for sustained revenue growth. Overall, Snowflake’s financial outlook appears robust, with multiple firms expressing confidence in its future performance.
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