Snowflake Inc. (SNOW) PT Raised to $190 at Evercore ISI

Evercore ISI analyst Kirk Materne raised the price target on Snowflake Inc. (NYSE: SNOW) to $190.00 (from $170.00) while maintaining a Outperform rating.

The analyst comments "SNOW delivered a strong ‘beat-and-raise’ quarter with product revenue of $900mn (+29%) coming in ahead of our/Street expectations of +21.5% / +22.5% and operating margins 6% vs. our/Street expectations of 3.4% / 3.2%. Perhaps most significantly, NRR stabilized at 127% q/q and RPO growth accelerated to 55% as SNOW signed three $50mn+ deals in the quarter. Further, management was optimistic on demand trends, bookings, and consumption heading into F4Q / FY26, which gives us confidence that we are nearing a bottom from a revenue growth perspective. While the quarter clearly benefited from less Iceberg related headwinds than initially assumed, the bigger story is that the macro backdrop is stabilizing and a number of new products such as Snowpark, Dynamic Tables, Connectors, and Snowpark Streaming are starting to contribute more materially to consumption revenue. All of which bodes well for FY26. Bottom line: Even with the big move in the shares in the after-market, we continue to believe that the risk/reward skews to the upside looking out to FY26 as our product revenue estimates (~21%) now seem like there should be some upside bias to them, op. margins are poised to move higher, and SNOW should see a bigger lift from AI related products like Cortex. Reiterate Outperform and raise PT to $190 (14x EV / CY26 revenue)."

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