Snowflake Stock Rallies After Analyst Hikes Price Target

Snowflake (SNOW) stock rallied Wednesday on positive analyst commentary from UBS.

UBS analyst Karl Keirstead raised his price target for Snowflake stock to 310 from 285 while reiterating a buy rating, through a note to clients late Tuesday. Snowflake stock rose more than 5% to 248.71 on the stock market today. Shares of the cloud-based data software provider have gained more than 60% year to date.

Keirstead offered the analysis of Snowflake after attending a customer event last week hosted by the company, as well as a separate conference earlier this week by rival software provider ClickHouse.

"The tone from customers about their planned data software and Snowflake spend remains quite strong," Keirstead wrote.

AI is helping drive demand for Snowflake's offering, the analyst added. Keirstead noted that peers in the broader data software space such as Palantir Technologies (PLTR) and MongoDB (MDB) have posted accelerated revenue growth rates in recent quarters.

"We continue to hear customer anecdotes about a desire to migrate more data to the cloud, boosting all cloud-optimized data software firms," Keirstead wrote.

He added that checks with industry sources indicated "that the data management market has really consolidated around two winners: Databricks and Snowflake. That's a difference compared to the observations of overlap/competition that dominated the narrative in 2023/2024."

Snowflake Stock Clears Buy Point

With Wednesday's gains, Snowflake stock has broken out past a 249.99 flat base buy point, according to IBD MarketSurge.

Meanwhile, Snowflake stock is showing a "blue dot" on its Relative Strength Line in the MarketSurge weekly chart. The RS Line Blue Dot feature combines the relative strength line with MarketSurge's Pattern Recognition offering. It appears if a stock's RS line hits a new high at the same time the stock is forming a base or breaking out.

Snowflake was the IBD Stock of the Day last Thursday.

Further, Snowflake stock holds an IBD Composite Rating of 97 out of a best-possible 99, according to IBD Stock Checkup. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.

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