Citizens raises Snowflake stock price target on improved customer spending outlook

Citizens Financial Group has raised its price target on Snowflake Inc. stock to $408 from $325, maintaining an "Outperform" rating. This new target suggests a potential 24% increase from the current price of $330.11, though some analysts believe the stock may be overvalued at present levels. Snowflake has experienced an 87% surge over the past six months and is nearing its 52-week high of $341.95.

The firm's analyst Patrick Walravens reported that 88% of 49 surveyed data points were positive this quarter, compared to 53% positive in the previous quarter. Among the 15 customers surveyed, 14 said they expect spending to increase, while one stated spending would remain flat. Additionally, Citizens identified 18 sales representatives who surpassed their targets, with a median attainment of 131%, compared to 27 representatives in the previous quarter with a median attainment of 121%.

Furthermore, four quota-carrying sales departures were noted in the second fiscal quarter, down from 15 in the first quarter. A source from one of Snowflake's largest partners stated, "I absolutely see Snowflake continuing to do well as I do with Databricks." The optimism surrounding Snowflake aligns with broader analyst sentiment, as 31 analysts recently revised their earnings estimates upward, according to InvestingPro.