Wang & Lee Group board approves 250-to-1 reverse share split
On Thursday, Wolfe Research analyst Alex Zukin increased the price target for Snowflake Inc . (NYSE: NYSE:SNOW) shares, raising it to $230 from the previous target of $180, while reaffirming an Outperform rating on the stock. Currently trading at $179.12, Snowflake has shown strong momentum with a 16% gain year-to-date. According to InvestingPro data, analysts maintain a bullish consensus with price targets ranging from $115 to $440. The revision reflects Snowflake’s impressive performance in terms of product revenue and margins, highlighting the company’s capability to sustain high growth rates alongside significant improvements in operational efficiency.
Zukin’s analysis indicates that Snowflake’s multiple avenues for growth, such as its core data warehousing strength, the growing adoption of AI, and strategic partnerships with companies like Microsoft (NASDAQ:MSFT), set the stage for continued expansion. InvestingPro data reveals impressive revenue growth of 29.2% in the last twelve months, with a robust gross profit margin of 66.7%. The stock is currently trading at a 13% premium compared to its heavyweight growth peers, which are expected to see a yearly revenue increase of over 20% in the calendar year 2025.
Despite trading at a premium when compared to its one-year average forward multiple, Snowflake’s stock is still slightly below its three-year average. The premium is considered justified by Wolfe Research, given the expectation that Snowflake can maintain a mid-to-high 20% growth rate with improved free cash flow margins. This is further supported by the company’s advantageous position in the enterprise AI sector and cloud data warehousing.
The new price target of $230 is based on an enterprise value to calendar year 2026 sales multiple of 15x, and 14x on upside estimates. This adjustment comes as Wolfe Research grows increasingly confident in Snowflake’s ability to continue generating robust revenue and an expanding margin profile. The Outperform rating remains in place, suggesting Wolfe Research’s positive outlook on Snowflake’s stock performance.
In other recent news, Snowflake Inc. reported its first-quarter earnings for fiscal year 2026, surpassing analysts’ expectations with non-GAAP earnings per share of $0.24 against the forecasted $0.21. The company also exceeded revenue projections, reporting $1.04 billion compared to the anticipated $1.01 billion, marking a 22% year-over-year growth. Product revenue reached $997 million, showing a 26% increase from the same period last year. Despite these strong figures, Snowflake’s free cash flow of $183.4 million fell short of the consensus forecast of $384 million, attributed to delayed renewals.
Analyst firms have responded to Snowflake’s performance with increased stock price targets. Bernstein SocGen raised its price target to $191, maintaining a Market Perform rating, while BofA Securities increased its target to $220, also keeping a Neutral rating. Citizens JMP set a new target at $245 with a Market Outperform rating, and Morgan Stanley (NYSE:MS) adjusted its target to $200, maintaining an Equalweight rating. These revisions reflect a cautious optimism about Snowflake’s growth trajectory, despite concerns over potential long-term deceleration.
Recent developments also highlight Snowflake’s strategic focus on artificial intelligence and data integration, which are expected to drive future growth. The company added 451 new customers, indicating strong market expansion efforts. Snowflake’s management has raised its full-year guidance, projecting product revenue between $1.035 billion and $1.040 billion for the second quarter, representing a 25% year-over-year growth.
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