Snowflake upgraded to Buy from Neutral at UBS

UBS upgraded Snowflake (SNOW) to Buy from Neutral with a price target of $265, up from $210. The firm is becoming increasingly confident in the prospect that Snowflake is “just a few quarters into what could prove to be a multi-year enterprise investment cycle in the data layer.” This is based on industry checks as well as the results from Snowflake, Palantir and Databricks, the analyst tells investors in a research note. While Snowflake shares are already up 35% year-to-date, “it’s not too late to get more constructive,” contends UBS. The firm says its recent Snowflake customer and partner checks are signaling a “clear uptick” in spending in the company’s data stacks, in many cases because of the greater value associated with corporate data to drive artificial intelligence application performance.