RBC Capital increased its price target on Snowflake Inc. to $440 from $372, maintaining an Outperform rating as the cloud data platform benefits from artificial intelligence-driven demand.
The new target, disclosed on Thursday, aligns with a broader upgrade cycle among peers. Scotiabank also raised its target to $440, while Stifel and Canaccord Genuity set their sights at $450. Mizuho lifted its target to $425, and Rosenblatt adjusted its estimate to $370. Snowflake last traded at $375.68, up 217% from its 52-week low.
The upgrades follow a second-quarter report that showed product revenue growth accelerating to 37% year-over-year, compared with 34% in the prior quarter and 30% in the final quarter of fiscal 2026. Snowflake also raised its fiscal 2027 product revenue guidance to 36%, up from prior expectations.
Total revenue for the quarter reached $1.547 billion, exceeding Rosenblatt’s estimate of $1.487 billion and the market consensus of $1.483 billion. Analysts cited strong momentum in AI-related product usage and broader enterprise cloud adoption as key drivers of the upward revisions.
InvestingPro data noted that despite the bullish outlook, Snowflake’s shares may be trading at elevated valuation levels relative to growth.
