Snowflake (SNOW): Wells Fargo Lifts Price Target to $250 on Attractive Near Term Setup

Snowflake Inc. (NYSE:SNOW) is one of the Trending AI Stocks in Focus This Week. On August 19, Wells Fargo reiterated the stock as “Overweight” and increased the price target to $250.00 from $225.00. The firm noted that the near term setup looks attractive.

The firm’s optimism largely stems from Snowflake’s anticipated acceleration in product revenue growth and positive customer sentiment. It is likely that the company experiences a re-acceleration in the second quarter, Wells Fargo believes, with product revenues projected to grow significantly.

The firm noted that these revenues are driven by new products like Snowpark and Cortex. Additionally, it seems that the full-year guidance of 25% year-over-year growth would be achievable given easing comparisons in the latter half of the year.

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Customer survey insights also reveal increased growth expectations and customer plans of increasing consumption. While cloud revenue results remain mixed, overall demand for cloud and AI services remains strong. The company’s progress in artificial intelligence is also seen as a positive catalyst, particularly owing to the partnership it has with OpenAI.

“We believe SNOW is among a few leaders in the cloud data space and poised to continue its momentum as a new mgmt team doubles down on its AI ambitions. We rate SNOW Overweight.”

Snowflake Inc. (NYSE:SNOW) is a cloud-based data storage company providing a data analysis, storage, and sharing platform.

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