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On Thursday, UBS analyst Karl Keirstead increased the price target for Snowflake Inc . (NYSE: NYSE:SNOW) shares to $210, up from the previous $210, while maintaining a Neutral rating on the stock. According to InvestingPro data, the stock, currently trading at $179.12, appears fairly valued based on its proprietary Fair Value model, with analyst targets ranging from $115 to $440. The adjustment followed Snowflake’s first-quarter results for April, which Keirstead regarded as slightly exceeding the high expectations set by robust investor sentiment. Snowflake’s revenue grew by 26% year-over-year—or 28% when accounting for the previous leap year—and surpassed forecasts by 4%. Additionally, the company raised its full-year revenue growth projection from 24% to 25%.
The after-market response to Snowflake’s earnings report was positive, with shares rising by approximately 5%. The company’s second-quarter guidance for July was particularly strong, and it was noteworthy that Snowflake did not mention any macroeconomic pressures or changes in usage patterns, indicating stability in customer engagement. InvestingPro data shows the company has achieved impressive revenue growth of 29.21% over the last twelve months, with a robust current ratio of 1.78 indicating strong liquidity. Get access to 8 more exclusive ProTips and comprehensive analysis with an InvestingPro subscription.
Keirstead’s commentary highlighted the earnings report’s potential to reinforce confidence in enterprise data spending for the year 2025. This sector growth is not only benefiting Snowflake but also positively impacting other players in the industry like Palantir (NASDAQ:PLTR) and Databricks. Despite the price target increase, the analyst’s valuation of Snowflake at CY26/FY27E revenue multiples of 12.0 times and 47 times free cash flow suggests that there may be further momentum in the stock following these results.
Snowflake’s performance and the optimistic guidance for the next quarter suggest a robust demand for enterprise data services amidst a market that has been closely monitoring tech spending due to various economic uncertainties. The company’s ability to maintain its growth trajectory without any reported usage pressures or changes is a sign of its resilience and the value customers place on its data cloud services. While currently unprofitable with a -$3.86 EPS, InvestingPro analysts forecast profitability in the coming year. Discover detailed insights and access the comprehensive Pro Research Report, available for Snowflake and 1,400+ other top US stocks, exclusively on InvestingPro.
In other recent news, Snowflake Inc. has reported impressive first-quarter earnings for fiscal year 2026, with non-GAAP earnings per share at $0.24, surpassing the consensus estimate of $0.21. The company also exceeded revenue expectations, posting $1.04 billion, a 22% year-over-year increase. Product revenue was particularly strong at $997 million, beating estimates by $38 million. Analysts have responded positively to these results, with Piper Sandler, Wolfe Research, BofA Securities, and Citizens JMP all raising their price targets for Snowflake. Piper Sandler increased its target to $215, citing Snowflake’s robust product growth, while Wolfe Research lifted its target to $230, highlighting the company’s strong operational efficiency. BofA Securities set a new target of $220, despite expressing some concerns about future growth prospects. Citizens JMP provided the highest target at $245, maintaining a Market Outperform rating. Meanwhile, Bernstein SocGen raised its target to $191, noting Snowflake’s stable business performance but maintaining a cautious stance due to potential long-term growth challenges.
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