Snowflake Inc. (NYSE:SNOW) is drawing fresh attention ahead of earnings as Wall Street firms adjusted their price targets while keeping a positive stance on the stock. Benchmark raised its target from $190 to $200 on May 19 and maintained a Buy rating, while RBC Capital lowered its target from $245 to $220 on May 15 and kept an Outperform rating.
The revisions reflect a mixed but still constructive view of Snowflake’s near-term setup. Both firms pointed to stronger-than-expected operating trends, with Benchmark expecting product revenue and operating income to come in above market estimates.
AI demand remains a key driver
Benchmark said Snowflake Intelligence, Cortex Code, and Observe are helping broaden AI adoption across more than 9,000 accounts. The firm also expects cloud consumption and generative AI workloads to support heavier usage of Snowflake’s AI Data Cloud.
That backdrop matters because Snowflake’s platform is built around helping organizations build, use, and share data, applications, and AI. The company operates as an American cloud-based data platform provider, and investor focus has increasingly centered on whether AI-related demand can accelerate usage across its customer base.
RBC sees a favorable but tricky outlook
RBC Capital described Snowflake’s outlook as “tricky but favorable” in a research note that previewed first-quarter results for software companies. The firm said stronger checks and growing adoption of Cortex Code could help Snowflake deliver solid results with no deceleration, or even modest acceleration, in product revenue.
The lower target from RBC did not change its positive rating, which suggests the firm still sees room for the stock to perform even as expectations are reset. That split between a higher target from one analyst and a lower one from another highlights the uncertainty around how quickly AI demand is translating into financial results.
What the price target changes signal
The new targets show that analysts are still watching Snowflake closely as earnings approach. Benchmark’s adjustment implies confidence that the company can outperform expectations, while RBC’s revision suggests a more cautious view on valuation and near-term upside.
For investors, the key question is whether Snowflake can convert AI momentum into stronger product revenue and operating income. The company’s AI Data Cloud, along with products such as Cortex Code and Snowflake Intelligence, remains central to that narrative as Wall Street waits for the next earnings update.
Read more at: finance.yahoo.com
