TLDR
- Snowflake stock reached a new 52-week high of $250.15, up 106% over the past year
- UBS analyst raised price target to $310 from $285 while maintaining a buy rating
- Stock rallied more than 5% to $248.71 following the analyst upgrade
- Data management market has consolidated around two winners: Databricks and Snowflake
- Company launched Cortex AI suite for financial services sector and appointed new Chief Communications Officer
Snowflake stock climbed to a new 52-week high of $250.15 on Wednesday. The cloud data software company has gained more than 60% year to date.
UBS analyst Karl Keirstead raised his price target for Snowflake to $310 from $285 late Tuesday. He maintained a buy rating on the stock.
The stock rose more than 5% to $248.71 on Wednesday following the analyst’s comments. Shares have posted a 106.4% gain over the past year.
Keirstead’s analysis came after attending a Snowflake customer event last week. He also attended a conference hosted by rival ClickHouse earlier this week.
“The tone from customers about their planned data software and Snowflake spend remains quite strong,” Keirstead wrote. Customer demand for cloud data solutions continues to drive growth.
The company holds a market capitalization of $84.45 billion. Revenue grew 28.37% year-over-year in recent quarters.
AI Demand Fuels Growth
AI applications are helping boost demand for Snowflake’s platform, according to Keirstead. Competitors like Palantir Technologies and MongoDB have also reported faster revenue growth recently.
“We continue to hear customer anecdotes about a desire to migrate more data to the cloud, boosting all cloud-optimized data software firms,” the analyst noted. Cloud migration remains a key driver for the sector.
Analyst price targets for Snowflake currently range from $170 to $440. The company is expected to achieve profitability this fiscal year.
Market Consolidation Benefits Snowflake
Industry checks revealed that the data management market has narrowed down to two main winners. Snowflake and Databricks now dominate the space.
This represents a change from 2023 and 2024 when multiple competitors were vying for market share. The consolidation reduces competitive pressure on both companies.
Other analysts have also raised their price targets recently. Mizuho reiterated an Outperform rating with a $260 target.
Jefferies maintained a Buy rating with a $270 price target. The firm highlighted Snowflake’s accelerating product innovation.
Wednesday’s rally pushed the stock past a $249.99 flat base buy point. The stock is showing strong technical indicators on weekly charts.
Snowflake holds an IBD Composite Rating of 97 out of 99. This rating combines five separate proprietary metrics into one score.
The company recently launched Cortex AI for the financial services sector. The new suite helps financial institutions integrate data ecosystems while maintaining regulatory compliance.
Snowflake also introduced a managed Model Context Protocol Server. The tool allows organizations to connect proprietary data with third-party sources from partners like FactSet and Nasdaq eVestment.
The company appointed Stella Low as Chief Communications Officer. Low previously held leadership roles at HP, Apple, and Cisco.
