Snowflake Inc.’s shares rose after Stifel increased its price target to $450 from $350 while maintaining a Buy rating, citing accelerating artificial intelligence and machine learning adoption across the platform.
The cloud data platform’s stock was trading at $306 at publication, giving it a market capitalization of $106 billion. The stock has surged 84% over the past six months, fueled by product revenue growth that accelerated to 37% year-over-year in the most recent quarter. This marks the third consecutive quarter of acceleration, according to Stifel.
Stifel also noted a fiscal 2027 revenue guidance increase of $230 million, following a second-quarter beat of approximately $75 million. The firm now expects Snowflake to sustain 30%-plus annual product revenue growth in coming years, up from its prior 25%-plus forecast. Gross margin for fiscal 2027 was lowered to 74% due to a higher mix of AI workloads.
Other analysts have also raised their targets. Morgan Stanley lifted its target to $470, while Canaccord Genuity and Needham set theirs at $450. Cantor Fitzgerald raised its target to $430. Guggenheim maintained a Neutral rating despite acknowledging strong results and an upward revision to product revenue guidance.
Management attributed the outperformance to strong core workloads and growing AI product usage, which is driving compounding consumption across the platform. Net-new customer additions and migration activity were described as robust. The company aims to expand operating margins by offsetting rising cloud costs with controlled headcount expenses.
