Snowflake’s AI Innovations Highlighted Amidst Valuation Concerns: Hold Rating Advised

Keith Weiss, an analyst from Morgan Stanley, maintained the Hold rating on Snowflake (SNOW – Research Report). The associated price target remains the same with $200.00.

Keith Weiss has given his Hold rating due to a combination of factors that reflect both optimism and caution. Snowflake’s recent Investor Day highlighted significant advancements in product innovation, particularly in integrating AI across its offerings, which positions the company well for future growth. However, the event did not provide substantial financial updates, leaving some uncertainty about the company’s immediate financial trajectory.
Despite Snowflake’s strides in expanding its capabilities to handle structured, unstructured, and multi-modal data, the current valuation at 55 times the projected free cash flow for 2026 suggests that the stock may be priced high relative to its near-term growth prospects. Therefore, while the company’s long-term potential remains attractive, Weiss recommends waiting for a more favorable entry point before increasing investment.

According to TipRanks, Weiss is a 5-star analyst with an average return of 14.4% and a 65.92% success rate. Weiss covers the Technology sector, focusing on stocks such as Adobe, Intuit, and Microsoft.

In another report released yesterday, Bank of America Securities also maintained a Hold rating on the stock with a $220.00 price target.