DA Davidson and BofA Stay Bullish on Snowflake (SNOW) Despite Market Challenges

Snowflake Inc. (NYSE:SNOW) is one of the 10 Best AI Software Stocks to Buy Right Now. On January 30, DA Davidson reiterated its Buy rating on Snowflake Inc. (NYSE:SNOW) with a $300 price target, citing value in carefully buying software companies that can overcome the pressures being faced by the broader software sector.

DA Davidson said it does not want “to fight the holy war quite yet,” but believes some software stocks stand out. The research firm noted that Snowflake Inc. (NYSE:SNOW) is a company that could “break the doomsday narrative more easily” than other companies. DA Davidson pointed out that its assessment was “simple and brief,” adding that it did not include any “material checks or analysis” to its existing outlook on the company.

Also on January 30, BofA reduced its price target on Snowflake Inc. (NYSE:SNOW) from $310 to $275 and maintained a Buy rating. The firm said that the company is still “one of the fastest growing stories in software” and named it a top pick in infrastructure software.

According to BofA, the main question is whether Snowflake Inc. (NYSE:SNOW) can maintain product revenue growth in the “high 20%s Y/Y” or even “reaccelerate into the 30s.” The firm said that this is “well within reach,” pointing to a growing product portfolio, AI tailwinds, and increasing spending from customers. BofA’s analyst said that the “blizzard is just starting to form on broad AI adoption, and we think Snowflake Inc. (NYSE:SNOW) will play a foundational role.”

Snowflake Inc. (NYSE:SNOW) is an American cloud-based data platform company. It offers an AI Data Cloud platform, which enables organizations to build, use, and share data, applications, and AI.

While we acknowledge the potential of SNOW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.