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Investing.com - Raymond James maintained its Outperform rating on Snowflake Inc. (NYSE:SNOW) while raising its price target to $274.00 from $230.00 following the company’s fiscal third-quarter 2026 results. The new target represents modest upside from SNOW’s current price of $265, which has surged 71.6% year-to-date according to InvestingPro data.
The cloud data platform provider reported what Raymond James characterized as a "modest beat" with a "mixed outlook" in its quarterly performance. The firm noted that Snowflake shares fell approximately 8% in after-hours trading following the announcement. Despite not being profitable over the last twelve months, InvestingPro data shows analysts expect Snowflake to turn profitable this fiscal year.
Raymond James observed that the quarterly upside was "perhaps more modest than historic beats" and below what the firm had considered possible after hearing from public cloud operators.
The firm highlighted positive commentary regarding traction with Cortex and artificial intelligence more generally, noting that 28% of use cases deployed during the quarter involved AI.
Raymond James cited these factors in its decision to increase its price target on Snowflake while maintaining its Outperform rating on the stock.
In other recent news, Snowflake Inc . reported its third-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share of $0.39, which was 25.81% above the forecasted $0.31. The company’s revenue reached $1.21 billion, slightly exceeding the projected $1.18 billion, marking a 2.54% surprise. Goldman Sachs raised its price target for Snowflake to $275, citing the company’s AI momentum and noting a 29% growth in product revenue, which was 2.3% above consensus estimates. However, Goldman Sachs highlighted a deceleration from the previous quarter’s 31.5% growth and mentioned that free cash flow was 55% below expectations.
KeyBanc increased its price target for Snowflake to $285, maintaining an Overweight rating, following a "solid" third-quarter product revenue beat. RBC Capital reiterated its Outperform rating with a $300 price target, describing the quarter as a "beat-and-raise" despite a slight deceleration in product revenue, which was offset by revenue performance obligation acceleration. These developments reflect the analysts’ confidence in Snowflake’s strategic direction and financial performance.
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