Snowflake price target raised to $185 from $171 at Bernstein

Bernstein analyst Mark Moerdler raised the firm’s price target on Snowflake to $185 from $171 and keeps a Market Perform rating on the shares. The firm notes Snowflake reported Q1 2025 earnings, delivering decent results and sending the stock up a bit in the aftermarket. However, Bernstein came away from the calls with two primary takeaways raised FY25 revenue guidance and strong RPO growth might overly inflate investor expectations; overall company and AI strategies difficult to decipher and may not play out as desired. The firm also notes that profitability took a hit with both GAAP and non-GAAP operating margins down in the quarter, and the full-year guidance for operating margin and free cash flow revised downward.