Barclays Downgrades Snowflake Inc. (SNOW) to Equalweight

Barclays analyst Raimo Lenschow downgraded Snowflake Inc. (NYSE: SNOW) from Overweight to Equalweight with a price target of $250.00 (from $290.00).

The analyst comments: "We downgrade Snowflake to an Equal Weight rating (from Overweight) with this report and lower our price target to $250 (from $290). We continue to see Snowflake as a best-in-class software asset, evidenced by it boasting one of the strongest top-line growth rates in our coverage at proper scale and above average FCF margins. However, we see limited upside going forward following stellar outperformance in 2025.

Importantly, for context, this move marks our third rating change for SNOW over the last three years, following our upgrade of the company to Overweight (from EW) in our 2025 Outlook (see 2025 Outlook: Recovery And AI To Drive Software Outperformance, 1/10/25) and our downgrade of the company to Equal Weight (from OW) with our 2024 Outlook (see U.S. Software: 2024 Outlook: Putting Both AI and SMID Cap Hype to the Test, 1/12/24). During this time last year, we saw improved execution for Snowflake on both the product and GTM fronts under its new CEO Sridhar Ramaswamy that was driving better momentum at the company that underpinned our upgrade."

For an analyst ratings summary and ratings history on Snowflake Inc. click here. For more ratings news on Snowflake Inc. click here.

Shares of Snowflake Inc. closed at $219.09 yesterday.

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