Snowflake Inc. (NYSE: SNOW) Receives Positive Outlook from KeyBanc with $168 Price Target
KeyBanc recently reiterated an Overweight rating and a $168.00 price target for Snowflake Inc. (NYSE: SNOW), following the company's second-quarter results. Snowflake's product revenue exceeded expectations by $18 million, with an increase in full-year 2025 product revenue guidance by $56 million.
The company's EBIT and FCF margins for the second quarter surpassed estimates, while remaining performance obligations (RPO) outperformed consensus by $275 million. Snowflake's recent product developments, including Snowpark and Cortex, were positively received.
Despite these positive results, concerns remain among long-term bears due to flat net new product revenue growth year-over-year. The estimated total addressable market (TAM) for Snowflake is around $350 billion, leading to a unchanged price target of $168.
Various financial analyst firms, including Scotiabank, TD Cowen, Rosenblatt, and Piper Sandler, adjusted their price targets for Snowflake while maintaining positive ratings following the second-quarter results.
Snowflake's growth trajectory and financial metrics indicate a company with strong potential in the cloud computing space. With a focus on innovation and market share capture, Snowflake's financial stability and growth opportunities are highlighted by InvestingPro Insights.
Snowflake's stock has experienced volatility, but analysts predict profitability this year, signaling a turning point for the company's financial performance. For investors with a long-term perspective, Snowflake's current fair value and analysts' price targets suggest potential upside.
In conclusion, Snowflake Inc.'s positive outlook, strong financial position, and growth potential make it a compelling investment opportunity for those looking to capitalize on the cloud computing sector's growth. It is essential to consider the company's financial metrics, analyst recommendations, and future earnings dates to make informed investment decisions.