Morgan Stanley Maintains Hold Rating on Snowflake (SNOW), Keeps $200 PT

Keith Weiss from Morgan Stanley maintained a Hold rating on Snowflake Inc. (NYSE:SNOW) on June 4, keeping the associated price target at $200.00. The analyst has an optimistic yet cautious outlook on the company.

Weiss noted that its recent Investor Day showcased several key product innovations, particularly in AI integration across the company’s offerings, which provides Snowflake Inc. (NYSE:SNOW) a strong foundation for future growth.

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

However, the analyst also reasoned that the event failed to provide substantial financial updates, which led to uncertainty surrounding Snowflake Inc.’s (NYSE:SNOW) immediate financial trajectory.

Weiss acknowledged that the company is continuously expanding its capabilities to handle unstructured, structured, and multi-modal data. Despite that, he opined that the stock may be priced high compared to its near-term growth prospects, which can be corroborated by its current valuation at 55 times the projected free cash flow for 2026.

While Snowflake Inc. (NYSE:SNOW) has attractive long-term potential, Weiss justified the Hold rating by recommending that investors wait for a more favorable entry point before raising their investments.

Snowflake Inc. (NYSE:SNOW) provides cloud data warehousing software. Its offerings include Data Cloud, and its platform supports a number of use cases, including data engineering, data warehousing, data sharing, data science, data application development, and more.

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 extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None.