The company's innovative approach to managing and analyzing data in the cloud has resonated well with businesses looking to leverage advanced technologies for enhanced decision-making and operational efficiency. As the adoption of AI continues to grow across industries.
Snowflake is well-positioned to capitalize on this trend and further solidify its position as a key player in the data management and analytics space. With a focus on driving value for its customers through cutting-edge solutions, Snowflake is expected to thrive in the evolving digital landscape, making it an exciting stock to watch in the coming months.
Snowflake is poised to see continued growth as demand increases and artificial intelligence projects become more prominent this year, as per BTIG.
Analyst Upgrades Snowflake to Buy with $220 Price Target
Gray Powell, an analyst at BTIG, has upgraded the cloud-based data storage company to a buy rating from neutral, setting a price target of $220 per share, indicating a potential upside of 17.9%. Powell noted, "After facing challenges in cloud optimization for over two years, our recent research indicates a positive demand outlook for the broader cloud data analytics market and Snowflake in 2025."
Snowflake's Recent Performance and Strategic Focus
Over the last six months, Snowflake's shares have experienced significant growth, a notable turnaround from previous years, driven by strong earnings, introduction of AI products, strategic partnerships, and cost-saving initiatives. Despite a 41% surge in the past six months and a 20.8% increase this year, the stock has decreased by over 15% in the last year and has shown a negative trend over the past three years.
Anticipated Tailwinds for Snowflake's Future Growth
Powell foresees multiple growth drivers for Snowflake, including the Snowpark platform becoming a key revenue generator by 2026, potentially yielding $1 billion from existing clients. Snowpark, a developer tool within Snowflake, enables data processing using languages like Python and Java directly on the cloud platform.
Snowflake's Position in the AI Landscape
Furthermore, Snowflake is expected to benefit from the increasing adoption of AI workloads, with AI projects transitioning into production by mid-2025 and consumption by late 2026. Powell highlighted the positive trends in cloud migration projects and consumption patterns, emphasizing the potential for AI initiatives to drive additional growth by 2025.
