‘Buy Snowflake Stock Before It Rises,’ Says Five-Star Analyst

Tech company Snowflake (SNOW) has recently started to stabilize its customer retention and slightly increased its new customer bookings. This has led analysts at Evercore ISI to believe that the company could perform better in the next few quarters. Indeed, five-star analyst Kirk Materne, who has a Buy rating and a $232.00 price target, explained that Snowflake’s net retention rate (NRR) has held steady in the mid-to-high 120% range, which is considered excellent for software companies. For context, NRR is a key measure of how much existing customers spend compared to the prior year.

Evercore expects this retention rate to stay strong thanks to increasing demand from large companies in the Global 2000 group. It is also worth noting that on May 21, Snowflake released its financial results for the first quarter of Fiscal Year 2026, where it delivered strong earnings and raised its guidance. Analysts say this shows that Snowflake’s new products and recent updates to its sales strategy are working well with customers. In fact, total bookings over the last twelve months grew by 34% in Q1, slightly better than the 33% growth in Q4.

Interestingly, to improve how it tracks future growth, Snowflake will still pay sales reps based on customer usage, but it is also adding a requirement for reps to meet booking targets. This will help the company better understand future demand. In addition, Snowflake is expanding its business by helping companies update their data systems and improve security, which is especially important as more companies adopt artificial intelligence. Indeed, the company is growing its own AI and machine learning revenue through tools like Snowpark, Dynamic Tables, and Cortex.

Is SNOW a Good Buy Right Now?

Overall, analysts have a Strong Buy consensus rating on SNOW stock based on 33 Buys, seven Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average SNOW price target of $220.54 per share implies 6% upside potential.

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