22 May Analysts are getting even more bullish on this cloud stock after earnings beat
Analysts see even more gains ahead for Snowflake after on the back of the cloud-based data storage company’s strong strong first-quarter print. The cloud company posted first-quarter earnings and revenue that beat analyst expectations. On top of that, Snowflake raised its fiscal 2026 revenue outlook. The results and updated guidance sent shares more than 9% higher in the premarket. The company has benefitted from higher enterprise spending from companies prioritizing artificial intelligence spending and looking to shift their workloads to the cloud. Its AI deals with other startups have also broadened its customer base to companies looking to build AI agents through its platform. The results led to many Wall Street shops upping their price targets on the stock, including Deutsche Bank, Morgan Stanley and UBS. Take a look at what they had to say: Deutsche Bank: reiterates buy, lifts price target by $5 to $225 Analyst Brad Zelnick’s new price target suggests Snowflake shares could jump 25.6% from Wednesday’s close. Zelnick said the results affirmed his views heading into the year that support Snowflake as a top pick. “At the heart of the stock debate is Snowflake’s ability to attract Data Science and AI workloads to drive the next leg of growth beyond core business analytics, and we believe this quarter showed evidence of why they are getting seat at that table,” Zelnick said. “Following strong F1Q upside the setup from the rest of the year now looks far less backend load for Product revenue, where encouraging F2Q guidance suggests another very strong quarter of net new consumption growth and potential top-line reacceleration for the first time in years.” Morgan Stanley: keeps equal weight rating, raises price target by $15 to $200 Analyst Keith Weiss raised his price target but said he is waiting for a better entry point given Snowflake’s current valuation. “A stable core, ongoing benefits from sales changes, and traction with new products are translating into sustained growth in product revenues. With secular prospects improving, priority for data infra rising and margins heading higher, we would take advantage of pullbacks to get more constructive,” Weiss wrote in a note to clients. JPMorgan: stays overweight, raises price target by $15 to $225 Analyst Mark Murphy highlighted Snowflake’s “robust” pace of product delivery, and that the company brought more than 125 products to market in the first quarter alone, translating to a 100% year-over-year increase. “Overall, we remain constructive on Snowflake’s ability to deliver improving growth trends as new features increasingly contribute to the top line, while we maintain our longstanding thesis that the AI center of gravity is increasingly shifting to the data layer,” Murphy wrote in a note. “Considering the large TAM, superb management team, and impressive trajectory, Snowflake could grow into and beyond the current valuation in future years, in our view.” UBS: maintains neutral rating, lifts price target by $10 to $200 Analyst Karl Keirstead said Snowflake’s current multiples don’t seem unreasonable and raised his price target to a “justified premium” given the stock’s high-growth peer group. “Of note was the very strong 2Q/Jul guidance and the absence of any ‘macro’ commentary (Snowflake said that it saw no usage pressure or change),” the analyst said. “Bottom line, the print should bolster Street confidence in enterprise data spend in 2025, a theme that is also lifting Palantir and Databricks. Even at CY26/FY27E multiples of 12.0x revs and 47x FCF, we expect some follow-through in the stock.” Bank of America: remains neutral, increases price target by $48 to $220 Analyst Brad Sills’ new price target implies shares could gain 22.8%. “We are raising our PO to $220 from $172 to reflect solid Q1 results, which suggest that Snowflake continues to benefit from improving consumption trends in the installed base,” Sills wrote in a note. “However, we reiterate Neutral. With only 3 net new Global 2000 customers adds, the shift to cloud in data warehouse is perhaps slowing. While commentary suggests that new workloads are ramping, we question whether these will be material enough to offset slowing growth in the core over time.”