Analyst Sanjit Singh from Morgan Stanley reiterated a Buy rating on Snowflake and keeping the price target at $299.00.
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Sanjit Singh has given his Buy rating due to a combination of factors that, in his view, outweigh the near-term concerns pressuring the stock. He acknowledges the recent share price weakness and investor debate around how much Snowflake can exceed its Q4 product revenue guidance, but emphasizes that the company is still guiding to its strongest sequential Q4 growth in several years. He further notes that management has already incorporated seasonal headwinds, such as holiday timing, into its outlook, which suggests the guidance is prudently set rather than overly optimistic.
Sanjit Singh’s rating is based on his constructive demand checks and positive indications from recent CIO surveys, which point to another robust year of growth for Snowflake. He views the FY27 consensus targets as challenging but attainable when benchmarked against Snowflake’s expected exit growth from FY26, even though investor nerves are elevated around a first-time guidance from the new CFO. In addition, he highlights that data infrastructure remains a favored spending area as enterprises invest in data modernization to support AI initiatives, and he believes Snowflake is well positioned in this structural trend despite rising competitive claims from hyperscalers and private rivals. Balancing these elements, he concludes that the underlying growth profile and strategic positioning justify maintaining an Overweight/Buy stance on the stock.
In another report released on January 11, Goldman Sachs also maintained a Buy rating on the stock with a $286.00 price target.