In a report released on May 18, Kash Rangan from Goldman Sachs reiterated a Buy rating on Snowflake (SNOW – Research Report), with a price target of $205.00.
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Kash Rangan has given his Buy rating due to a combination of factors that highlight Snowflake’s potential for growth and stability. The company is expected to report product revenue growth of 21% and a non-GAAP operating margin of 5%, which aligns with consensus expectations. Additionally, stable consumption trends observed by Datadog and Hyperscalers are seen as positive indicators for Snowflake’s performance.
Furthermore, Snowflake’s fundamentals are strengthening, with the net revenue retention rate stabilizing and new product developments under the strategic leadership of CEO Ramaswamy. The company’s partnerships with Microsoft/OpenAI and Anthropic enhance its credibility and market reach, particularly in AI/ML features. Snowflake’s open data format, Iceberg Tables, is also expanding its addressable workload opportunity, potentially boosting revenue. Overall, Rangan views Snowflake as a high-quality asset capable of scaling into a $10 billion+ business with durable growth, justifying a premium valuation.
Rangan covers the Technology sector, focusing on stocks such as Microsoft, ServiceNow, and Intuit. According to TipRanks, Rangan has an average return of 9.8% and a 60.08% success rate on recommended stocks.
In another report released yesterday, Citizens JMP also reiterated a Buy rating on the stock with a $201.00 price target.