Snowflake Inc. (SNOW) PT Raised to $230 at Evercore ISI
Evercore ISI analyst Kirk Materne raised the price target on Snowflake Inc. (NYSE: SNOW) to $230.00 (from $200.00) while maintaining a Outperform rating.
The analyst comments "SNOW delivered a strong ‘beat and raise’ F4Q highlighted by product revenue of $943.3mn (+28%), solidly above mgmt. guidance of $906- 911mn (+23%), and operating margins of 9% vs. mgmt. guidance of 4%. Perhaps most significantly, FY26 product revenue guide of $4,280mn (+24%) came in solidly ahead of Street expectations of $4,234mn (+23%), and FY26 operating margin guidance of 8% came in ahead of Street expectations of 7.1% – contributing to shares being up ~10% in the after hours. We would also note that Snowflake tends to guide conservatively, and we expect upward revisions to guidance as the year progresses. Management flagged that consumption patterns remain stable: technology customers outperformed expectations, there was strong adoption of data engineering and AI capabilities, financial services remains the top vertical, and EMEA was a source of strength. Further, mgmt. views Iceberg as a tailwind that will bring many more workloads to Snowflake and has not seen large migrations of data off Snowflake as previously feared. Lastly, CFO Mike Scarpelli has announced his intention to retire after the company names a successor, though the timeline on this has not been announced. He will be missed but we believe the stage is set for SNOW to deliver strong growth and margin expansion at scale. Bottom line: We believe that revenue growth stabilization in the mid-20%s with expanding margins will help drive multiple expansion from current levels. With NRR stabilizing in the mid-120%s and newer products such as Snowpark and Cortex set to ramp in 2H, we believe that there is room for the guidance to be walked up over the course of the year. Maintain Outperform and move PT to $230 (16x EV / CY26 revenue)."