Bank of America tweaks Snowflake stock price target before earnings

BofA Securities raised its terms people connected Snowflake (SNOW) successful a enactment shared with TheStreet, maintaining a Buy standing up of the company's May 27 net report. At $171.27, that people implies astir 20% upside from existent levels.

The bank's connection is pointed: the AI concern quality accidental Snowflake is competing for is increasing accelerated capable that the stock's year-to-date underperformance looks much similar an introduction constituent than a informing sign.

Analyst Koji Ikeda, who ranks 857 retired of 12,237 Wall Street Analysts, noted that BofA does not expect thing from the first-quarter results to alteration their presumption that Snowflake is gaining marketplace stock successful the AI concern quality opportunity. May 27 volition beryllium the test.

BofA Securities raised Snowflake's terms people to $205 from $195

BofA raised its terms people from $195 to $205, reflecting a circumstantial valuation model - not a revision to fiscal forecasts. The steadfast raised its endeavor worth to a calendar twelvemonth 2027 estimated gross aggregate of 10.3 times from 9.8 times, citing higher execution confidence, according to the note.

That favoritism matters. BofA is not expanding estimates due to the fact that results person improved successful the adjacent term. It is paying a higher aggregate due to the fact that its assurance successful Snowflake's quality to execute implicit the adjacent 18 months has increased, specifically astir the AI concern quality opportunity.

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The steadfast noted immoderate interest astir near-term Middle East request headwinds but framed them arsenic immaterial. Middle East gross is estimated astatine astir 1% of Snowflake's total, according to the note. That level of geographic attraction is excessively tiny to determination the needle connected a institution targeting $5.66 cardinal successful full-year fiscal 2027 merchandise revenue.

The broader expert representation is divided. According to Investing.com, JMP Securities and Citizens some transportation $325 terms targets with Market Outperform ratings. UBS and Evercore ISI person pulled backmost their targets to $210 and $200, respectively, citing contention concerns and halfway unreality information warehousing deceleration.