Redburn downgrades Snowflake to Sell on lack of AI advantage

Redburn Atlantic downgraded Snowflake to Sell from Neutral with a price target of $125, down from $180. Snowflake lacks a clear generative artificial intelligence advantage, posing a budget reallocation risk that the stock’s current valuation does not reflect, the analyst tells investors in a research note. The firm says the company’s architectural limitations “make it vulnerable to future trends.” The recent profit warning signals ongoing headwinds as optimization shifts from storage to the platform’s processing core, contends Redburn. It also believes market expectations beyond the current year “remain overly optimistic.”