Snowflake Inc. (SNOW) PT Raised to $220 at Loop Capital
Loop Capital analyst Mark Schappel raised the price target on Snowflake Inc. (NYSE: SNOW) to $220.00 (from $215.00) while maintaining a Buy rating.
The analyst comments "Snowflake posted strong F1Q results across the board ahead of both our and consensus expectations. Product revenue of $997M was 4% ahead of our $961M forecast with better- than-expected profitability as non-GAAP operating margins of 8.8% were an impressive 370 bps ahead of our estimate. Management offered strong (but likely conservative) guidance, raising the full fiscal year outlook from 24% to 25% y/y growth, though profitability is unchanged as the firm continues to invest for growth. We continue to believe SNOW is a long-term beneficiary of migrating analytical workloads to the cloud and the emerging AI data management opportunity. SNOW's financial metrics and outlook have improved since F3Q25, which we believe supports a higher forward multiple, so we expect the stock to re-rate higher with continued execution and the combination of accelerating growth and expanding margins. We reiterate our Buy rating, while upping our price target to $220 based on 12.5x EV/ Revenue on our increased FY28 (C2027) estimates. More tactically, we expect further details on the quarter, the go-to-market strategy, and new product updates during the firm's annual user conference and investor day on June 3."