'Snowflake Inc. (SNOW) Delivers on Print & Guide'; PT Raised to $230 at TD Cowen

TD Cowen analyst J. Derrick Wood raised the price target on Snowflake Inc. (NYSE: SNOW) to $230.00 (from $210.00) while maintaining a Buy rating.

The analyst commented: "SNOW Delivers on Print & Guide; SNOW posted a strong 1Q with product growth of 26% beating Street at 22% & FY26 guide was raised from 24% to 25% with margin guide unchanged. Core consumption was strong, up-tick in net new adds was driven by yield from new GTM focus & adoption of Data Engineering products is trending well. We see room for continued beat & raise cadence, w/ new products ramping further.

This was an impressive qtr in a tough macro, which we think reflects the high priority of core Data/Analytics projects, the growing breadth of SNOW's platform into Data Engineering & AI workloads, and the strength in GTM execution. And w/ the strong 1Q upside and modest raise to FY guide, we see 2H estimates more de-risked. Looking forward, we see stable core growth trends and building momentum of new growth levers in AI/ML, which should support continued strong outperformance relative to a mid-20% growth outlook at ~$4b in rev scale. We think this construct should yield a strong premium. PT to $230 (~55x EV/CY26E FCF). Reiterate Buy."

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