Barclays downgraded Snowflake (SNOW) to Equal Weight from Overweight with a price target of $250, down from $290. The firm adjusted ratings in the software group as part of its 2026 outlook. Barclays sees a favorable setup for software in 2026. Macro and IT spending are stable, while stock valuation levels are low and the sector is out of favor, the analyst tells investors in a research note. However, Barclays cites valuation for the downgrade of Snowflake following the stock’s 42% rally in 2025. A higher valuation level, increased investor expectations and heightened competition for new workloads are creating an unfavorable setup for the shares, the firm contends.
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