The Zhitong Finance App learned that Oppenheimer raised the target price of Snowflake (SNOW.US) from $295 to $400 while maintaining the stock's “Outperform” (Outperform) rating. Analysts led by Ittai Kidron said that their research on Snowflake shows that the company's consumption and sales pipeline generation in all regions and industries are strong, large-scale transactions are gaining momentum, migration activities are accelerating, and at the same time, the usage rate of Coco, the company's AI programming intelligence agent, is also constantly expanding.
The analyst added that COCO has quickly become a key component of Snowflake's sales strategy, driving the rapid expansion of AI/intelligent agent workloads (mainly from customers who have adopted CoCo earlier), accelerating the migration of core data/analytics workloads, and becoming a new channel for customer interaction.
Kidron and his team said, “Taken together, we think these factors will drive customers to make larger promises, accelerate renewal cycles, and further accelerate year-on-year growth in product revenue (up to 34.7% compared to 33.5% previously). Competition between Snowflake and Databricks remains intense, although both companies seem to be mainly seizing market share from traditional vendors. Overall, we remain positive and expect product revenue to rise 3%-4% to reach US$146.87 billion; in median terms, the year-on-year increase was 34.7%, while the market consensus forecast was US$141.9 billion, up 30.1% year over year. Meanwhile, Snowflake's sales pipeline for the third quarter of fiscal year 2027 remained healthy.”