Snowflake (NYSE: SNOW) shares wallowed near long-term lows for years as concerns about slowing growth and financial health weighed on sentiment, but the times have changed. The Q3 results reveal persistent strength, swelling client counts, and depending penetration of services, revealing its industry-leading position in data management and value for investors. The news includes significant increases in all metrics that provide leverage to the bottom line and greatly improve the financial outlook. The company will face headwinds as it grows and scales the business but is well-positioned to do so, and the stock price now has the support of analysts.
The analysts' response to the FQ3 results is overwhelmingly bullish, with more than a dozen raising their price targets. The price target increases are substantial; most are solidly double-digits, with many in the 20% to 30% range and the consensus target firming. Consensus assumes fair value near the $170 level, but the revision trend, which reversed the downtrend in place, suggests a move to the $190 to $200 range is likely, and this is a low forecast. The company’s guidance assumes the business trends will continue, leaving the door open for outperformance and strong guidance for 2025.
