Citi Raises its Price Objective for Snowflake Inc. (SNOW)

Tyler Radke, a Citi analyst, has maintained his Buy rating on Snowflake Inc. (NYSE:SNOW) and increased his price objective from $235 to $245.

Following Snowflake Inc. (NYSE:SNOW)'s better-than-expected Q1 performance, which Radke says "checked all the boxes," the modification was made. Strong bookings, rapid product acceptance, and resilient consumption all contributed to the company's success. Snowflake Inc. (NYSE:SNOW) also gave "strong" Q2 guidance and a "solid raise" to its FY26 estimate, showing that demand patterns held up well through May despite macroeconomic uncertainty.

Snowflake Inc. (NYSE:SNOW)'s Q1 beat proves its capacity to maintain client usage and grow with new offerings, hence improving the platform's applicability in a difficult environment. The strong Q2 guidance and the upward revision to FY26 estimates, according to analyst Tyler Radke, show confidence in continued enterprise data consumption.

Despite wider economic challenges, Citi believes Snowflake Inc. (NYSE:SNOW) continues to perform well operationally and has solid fundamentals, as seen by the revised $245 price objective.

While we acknowledge the potential of SNOW to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than SNOW and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure. None.