Bernstein raises Snowflake stock price target on strong results

Snowflake Inc. (NYSE:SNOW) experienced stronger-than-anticipated results, prompting investment firm Bernstein to raise its stock price target from $250 to $377. This marks a 15x price target, up from the previous 11x, reflecting heightened growth expectations for the cloud data platform. Currently trading at $370, Snowflake shares have surged 84% over the past six months, though analysts note potential overvaluation at present levels.

Bernstein's rating for Snowflake remains Market Perform, but the firm suggests further analysis is required to understand the differentiation of Snowflake's AI offerings and the sustainability of growth. The company reported a 31% year-over-year revenue growth in the last twelve months, with forecasted earnings of $2.07 per share.

Snowflake delivered a quarter exceeding expectations, boasting positive AI attach rates and a focus on evolving into an AI platform. Despite maintaining a positive bias, Bernstein will continue to monitor the company closely before adjusting its stance.