Snowflake Inc.: Citigroup raises target price to $395 from $320

Citigroup has raised its price target for Snowflake Inc. (NYSE: SNOW) to $395 from $320, maintaining a Buy rating. The adjustment reflects the firm’s growing confidence in Snowflake’s ability to deliver strong revenue growth and profitability amid robust demand for its AI-driven data cloud solutions. The stock is currently trading at $321.26, near its 52-week high of $341.95.

The revised target follows Snowflake’s recent earnings performance and strategic momentum in the AI and cloud computing sectors. Analysts highlighted the company’s ability to maintain a free cash flow margin above 25% and its adherence to the Rule of 40, a key benchmark for tech companies balancing growth and profitability. Additionally, Snowflake’s recent product innovations, including its Cortex platform, have driven demand across industries such as financial services and transportation.

Benchmark, another major analyst firm, also raised its price target to $360 from $290, citing strong enterprise AI adoption and Snowflake’s leadership in the data cloud market. The company is expected to report fiscal second-quarter results on September 2, with analysts anticipating continued outperformance in product revenue and operating margins.

Snowflake’s leadership transition, including the appointment of Mike Gannon as Chief Revenue Officer, has further reinforced investor confidence in the company’s long-term growth strategy. With 31 analysts revising earnings forecasts upward, the stock remains a focal point in the software sector as it navigates evolving market dynamics and technological advancements.