BTIG upgrades Snowflake to 'buy' on improving demand

Investing.com -- BTIG upgraded Snowflake Inc (NYSE: SNOW) to "Buy" from "Neutral" and introduced a $220 price target on improving demand trends and potential AI-driven growth.

The brokerage noted that after more than two years of cloud optimization headwinds, its recent fieldwork suggests a stronger demand backdrop in 2025. Additionally, BTIG sees Snowpark, Snowflake’s developer platform, becoming a more meaningful revenue driver in fiscal 2026.

AI workloads moving into production by mid-2025 could serve as an incremental tailwind for Snowflake’s consumption growth in the second half of fiscal 2026, the note added.

The analyst said they found “more confidence in the stability of the competitive environment.”

BTIG expects Snowflake to report a standard product revenue beat for fiscal Q4 2025 but anticipates conservative FY26 guidance in the 21%-22% range, slightly below Wall Street’s 23.6% estimate. However, it sees the potential for the company to achieve 25%+ growth as the year progresses.

“After two-plus years of dealing with cloud optimization headwinds, we see an improving demand backdrop. We think Snowpark will become a more meaningful growth driver. And we see potential for AI workloads moving into production to create incremental tailwinds to consumption,” analyst at BTIG said.

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