Snowflake Inc. (SNOW)
Analyst Update
Oppenheimer’s analyst Ittai Kidron, cut the 12 month price target on Snowflake’s stock to $250.00 from $295 per share, The $250 target still implies substantial upside potential, underpinned by expectations that Snowflake’s consumption-based revenue model is beginning to re-accelerate following a period of customer optimization and tighter cloud spending controls.
Oppenheimer’s outlook reflects confidence that enterprise demand for cloud-native data platforms remains durable, particularly as organizations increasingly consolidate analytics, data engineering, and artificial intelligence workloads within unified ecosystems. Snowflake’s expanding product portfolio, including capabilities in data sharing, governance, cybersecurity, and application development, continues to deepen wallet share among large enterprise customers while broadening its total addressable market.
A key pillar of the bullish thesis centers on AI monetization. As generative AI and machine learning workloads scale, Snowflake is positioned to benefit from higher compute consumption and new developer activity within its platform. The integration of advanced AI tools and partnerships with leading model providers is expected to drive incremental usage, reinforcing top-line growth.
From a profitability standpoint, analysts anticipates improving operating leverage as revenue growth stabilizes and expense discipline remains intact. Margin expansion, rising free cash flow generation, and strong net revenue retention rates further support valuation upside. Collectively, these factors underpin Oppenheimer’s constructive stance, suggesting that while near-term volatility persists, Snowflake’s long-term structural growth drivers remain firmly in place.
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It’s interesting to see how Oppenheimer is adjusting its price target while still maintaining a bullish stance on Snowflake. The shift seems to reflect a more nuanced view of the company’s trajectory, especially with the move toward a consumption-based model and growing AI-related use cases. It’ll be worth watching how the broader cloud spending environment evolves and whether this re-acceleration in revenue holds up in the coming quarters.
It’s interesting to see how Oppenheimer is adjusting its price target while still maintaining a bullish stance on Snowflake. The shift seems to reflect a more nuanced view of the company’s trajectory, especially with the growing emphasis on AI monetization and consumption-based revenue. It’ll be worth watching how the data sharing and governance features play out in terms of customer adoption and retention.