William Blair analyst Jason Ader has maintained their bullish stance on SNOW stock, giving a Buy rating today.
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Jason Ader has given his Buy rating due to a combination of factors that highlight Snowflake’s robust performance and strategic positioning. Despite a slight decline in stock value after-hours due to a modest third-quarter product revenue beat, Snowflake’s core business remains strong. The company is effectively executing its long-term strategy to become a comprehensive data platform, supporting both structured and unstructured data use-cases. Key indicators of this strength include a stable net revenue retention rate of 125% and the addition of a record 615 new customers in the quarter, showcasing continued business growth and expansion into data engineering and AI workloads.
Furthermore, Snowflake’s financial performance is solid, with a non-GAAP operating margin of 10.8% and earnings per share exceeding expectations. The company’s confident guidance for the fourth quarter, with product revenue projected above consensus, reflects management’s positive outlook on sustained migration activity and increased use-case wins. The updated full-year 2026 product revenue guidance also surpasses previous expectations, reinforcing the firm’s optimistic view on Snowflake’s future growth potential.
In another report released today, Needham also maintained a Buy rating on the stock with a $280.00 price target.