Snowflake Inc. (NYSE:SNOW) is without doubt one of the Trending AI Stocks on Wall Street. On August 20, BofA Securities analyst Brad Sills upgraded the inventory from Impartial to Purchase with a worth goal of $240.00 (from $220.00). The agency has upgraded the inventory primarily based forward of Snowflake’s August 27 earnings primarily based on enhancing demand tendencies and long-term progress prospects in AI and knowledge providers.
BofA cited a number of knowledge sources which have pointed to momentum in Snowflake’s knowledge warehouse and rising Cortex AI and Snowpark developer companies.
“We improve Snowflake to Purchase from Impartial, and lift our estimates, and PO to $240 (53x CY26FCF/1.9x progress adj, from $220, 48x/1.7x), given three distinct proprietary knowledge sources which level to momentum in Snowflake’s knowledge warehouse and rising Cortex AI and Snowpark developer companies. Whereas the inventory has had a great run (+47% y/y), the shares are buying and selling at an affordable 1.5x CY26E FCF a number of adjusted for progress versus the massive cap peer group at 1.6x.”
The agency anticipates Q2 product income of about $1.06 billion pushed by stronger internet exercise tendencies. Channel checks additional level to an enhancing backdrop, with prospects progressively turning to Snowflake as a essential a part of the AI know-how stack.
Snowflake does face competitors and dangers stemming from its consumption-based income mannequin, however the rising $155 billion addressable AI software program market highlights a key alternative for the corporate.
“Whereas we imagine that Q2 earnings (8/27) can be a catalyst for the inventory given a number of constructive knowledge factors outlined under, our name is for outperformance over the long run given incremental traction with merchandise addressing a major bigger addressable AI marketplace for software program of $155bn.”
Snowflake Inc. (NYSE:SNOW) is a cloud-based knowledge storage firm offering an information evaluation, storage, and sharing platform.
Whereas we acknowledge the potential of SNOW as an funding, we imagine sure AI shares provide higher upside potential and carry much less draw back threat. When you’re searching for an especially undervalued AI inventory that additionally stands to learn considerably from Trump-era tariffs and the onshoring development, see our free report on the best short-term AI stock.
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