Snowflake adds to AI gains as Wall Street weighs in post summit

Wall Street analysts weighed in positively on Snowflake (NYSE:SNOW) following its AI summit, which highlighted some high-profile partnerships including Microsoft (NASDAQ:MSFT) and NVIDIA (NASDAQ:NVDA). More than a half dozen analysts raised their price targets on SNOW following the event. After gaining 4.2% on Tuesday, shares of SNOW are up another 1.7% in pre-open trading Wednesday on the positive sentiment.

Goldman Sachs analysts reiterated a Buy rating and raised his price target to $210 from $185. The analysts said the event boosted their confidence in SNOW’s potential to surpass the $10 billion product revenue goal in FY 2029, citing: “1) durability of core data warehousing, 2) upside optionality predicated on several adjacent markets with significant upside pivoted around Generative AI (link), 3) best-in-class net revenue retention and 4) large +$140bn data cloud TAM. Near-term, consumption trends improved in May/June, which could position Snowflake for a stronger 2Q/2H24 and eventually re-acceleration in F25.”

TD Cowen analysts raised their price target to $205 from $185, while reiterating an Outperform rating. They said SNOW showcased strong AI announcements, reflecting their expansive vision in the Data Cloud market. The AI buzz is revitalizing buyers, boosting management’s optimism, and leading to increased long-term margin targets, they added.

Meanwhile, William Blair analysts resumed coverage on SNOW with an Outperform rating following the event. They said the event highlighted the company’s market potential and strategy to expand beyond data warehousing, serving as a platform for AI-based applications. New product announcements focused on data migration and leveraging it to build AI and streaming apps. Notably, the Snowpark container service allows customers to integrate prebuilt LLMs and enrich them with enterprise data.

Analysts at JPMorgan ($180), Mizuho ($190), Baird ($200), and Wells Fargo ($195), also raised their price targets.