Shares of Snowflake (SNOW) are up in today’s trading after Wolfe Research, led by five-star analyst Alex Zukin, upgraded the software company from Hold to Buy due to improving consumption trends and solid financial results. The research firm expects Snowflake’s fourth-quarter earnings to be strong, with revenue growth of around 28%. This optimism is based on Wolfe’s checks with industry sources, which indicate that demand for Snowflake’s cloud-based data platform is stabilizing and even improving.
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Snowflake is set to release its fourth-quarter financial results on February 26, and analysts expect the company to report adjusted earnings per share of $0.18 on revenue of $956.19 million. Wolfe Research is also optimistic about Snowflake’s Fiscal Year 2026 prospects, as it predicts that product revenue will grow by 23% year-over-year. This would put Snowflake’s full-year product revenue at $4.26 billion, slightly above consensus estimates.
As a result, Wolfe Research has set a price target of $235 per share for Snowflake’s stock price, which implies a valuation multiple of 15.9 times the expected revenue for Fiscal Year 2026. Interestingly, it is worth noting that, so far, Zukin has enjoyed a 63% success rate on his stock ratings, with an average return of 20% per rating.
Is SNOW a Good Stock to Buy Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on SNOW stock based on 28 Buys, four Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 13% decline in its share price over the past year, the average SNOW price target of $199 per share implies 3.9% upside potential.
