Snowflake’s Strategic Growth and AI Initiatives Drive Buy Rating with $235 Price Target

Gray Powell, an analyst from BTIG, reiterated the Buy rating on Snowflake (SNOW – Research Report). The associated price target remains the same with $235.00.

Gray Powell has given his Buy rating due to a combination of factors that highlight Snowflake’s promising growth trajectory and strategic initiatives. The company’s recent investor presentation showcased encouraging developments in new product initiatives, particularly in the areas of automation and AI integration, which are expected to enhance the core data warehouse platform. The upgrades, such as the Gen 2 Warehouse and the Adaptive Warehouse, are designed to improve performance and efficiency, potentially driving increased workloads and new use cases on the platform, thus supporting long-term growth.
Additionally, Snowflake’s acquisition of Crunchy Data positions the company to expand into the Postgres database market, targeting next-generation applications and strengthening its competitive stance against rivals like Databricks. The positive outlook is further supported by promising sales hiring trends and expected productivity gains. With a projected price target of $235, based on a higher EV/sales multiple compared to peers, Powell sees significant upside potential driven by AI initiatives and other emerging tailwinds, making the stock a compelling investment opportunity.

Powell covers the Technology sector, focusing on stocks such as Zscaler, CrowdStrike Holdings, and Snowflake. According to TipRanks, Powell has an average return of 10.2% and a 56.53% success rate on recommended stocks.

In another report released today, Needham also maintained a Buy rating on the stock with a $230.00 price target.