Citizens JMP Lifts Snowflake (SNOW) Price Target, Keeps Outperform Rating

Snowflake Inc. (NYSE:SNOW) is one of the 11 Best Revenue Growth Stocks to Buy Now. On July 18, Citizens JMP increased the price target for Snowflake Inc. (NYSE:SNOW) from $245 to $260 while maintaining an Outperform.

The analyst told investors in a research note that private company checks by Citizens JMP showed that Snowflake Inc.’s (NYSE:SNOW) performance improved from the first quarter to the second quarter.

Citizens JMP Lifts Snowflake (SNOW) Price Target, Keeps Outperform Rating

A software engineer at work, surrounded by a wall of computer monitors connected to a ‘Data Cloud’ platform.

Citizens JMP asked 13 customers about their future spending plans over the next 12-18 months. Out of these, 12 said they expect to increase their spending.

With the new price target of $260 for Snowflake Inc. (NYSE:SNOW), Citizens JMP implies a calendar year 2026 estimated enterprise value to revenue multiple of 16.3 times, which is higher than the previous estimate of 15.3 times.

The firm noted that this valuation represents a significant premium to the company’s peer group. According to Citizens JMP, this premium is justified because Snowflake Inc. (NYSE:SNOW) has a large total addressable market and a strong leadership team.

Snowflake Inc. (NYSE:SNOW) is an American cloud-based data platform company. It offers an AI Data Cloud platform, which enables thousands of organizations to build, use, and share data, applications, and AI.

While we acknowledge the potential of SNOW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SNOW and that has a 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.