Snowflake stock rose more than 31% on Thursday after third-quarter results beat analysts’ expectations on sales and bottom line. And analysts expect further gains. The meteoric rise has put cloud-based data stocks on track for their best day ever. Snowflake executives on Wednesday raised their full-year product sales forecast to $3.43 billion, an increase of 29% from the previous forecast of $3.36 billion. SNOW YTD Mountain Snowflake stock had its best day ever on Thursday. The company added on Wednesday that it plans to partner with Amazon-backed artificial intelligence startup Anthropic. CEO Sridhar Ramaswamy also noted that Snowflake has the potential to grow its business involving the federal government. Goldman analyst Kash Langan reiterated his buy rating on Snowflake following the third-quarter results and maintained his price target of $220 per share. Langan’s forecast suggests an increase of more than 70% from Wednesday’s closing price of $129.12. “Given the company’s strong competitive position, with strong long-term tailwinds such as cloud adoption, big data, and AI/ML (artificial intelligence/machine learning), Snowflake is poised to make a generational shift to the cloud for data and analytics. We continue to see it as well-positioned to take full advantage of this and secure data sharing is expected to drive sustained growth for the foreseeable future,” Langan said. JPMorgan bullish on others JPMorgan Chase analyst Mark Murphy maintained an Overweight rating on Snowflake stock, but raised his price target to $185 per share. Murphy’s forecast suggests an upside of more than 47%. “We expect Snowflake to continue to grow its revenue at a rapid pace,” Murphy said. “The combination of addressing long-term trends such as data growth and digital transformation, very fast revenue growth at scale, and a solid and efficient business model will make Snowflake a standout asset among software companies. We believe,” Bank of America analyst Brad Sills said, encouraged by the marked improvement in demand trends in the third quarter, the company is expanding its data engineering and AI division. He said he is encouraged by the efforts of The analyst reiterated his neutral rating on Snowflake’s stock, but raised his price target to $185 per share from $160, representing an upside of more than 43%. “We are looking for more material traction outside of the core before concluding that Snowflake has widened the competitive moat from pure plays and hyperscaler platforms,” Sills cautioned. Wells Fargo’s Michael Tulin reiterated his equal weight rating on Snowflake following the quarterly results, but raised his price target to $150 per share from $125. The outlook for Turin is that prices are expected to rise by about 16% going forward. He noted that Turin remains neutral on the stock price primarily because of Snowflake’s multiple current statuses that place it ahead of its peers in the software space. But he added that he was optimistic that the company would remain a key player in the sector. “While SNOW remains a leader in cloud data, increasing competition intensity coupled with the budding AI-driven product cycle is driving the platform to differentiate itself (in the long term) and maintain similar levels of growth into the future.” There are doubts about the company’s capabilities,” Tulin said. .
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