KeyBanc has kicked off its coverage on data cloud platform Snowflake (NYSE:SNOW) with a Buy rating and a $185 price target. Analyst Eric Heath, who has a 73% success rate and a 20% average return, believes the company’s 20%+ growth rate is “durable.” This is due to the ongoing shift from legacy data warehouses to the cloud, improving trends in cloud migration, an expanding suite of products, and Snowflake’s user-friendly platform. In fact, Snowflake is becoming a go-to for developing and hosting generative AI workloads. As a result, SNOW stock is up in today’s trading.
KeyBanc is also encouraged by the firm’s management team. This includes new CEO Sridhar Ramaswamy, who previously led Google’s advertising segment and an AI search engine startup, Neeva. This positions him as a valuable asset. After Snowflake’s acquisition of Neeva in 2023, Ramaswamy invested $5 million in its shares, a move that aligns him with investors.
Is SNOW Stock a Good Buy?
Overall, analysts have a Moderate Buy consensus rating on SNOW stock based on 24 Buys, 11 Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 13% rally in its share price over the past year, the average SNOW price target of $211.26 per share implies 33.7% upside potential.
