Snowflake is back in the spotlight after Cantor Fitzgerald analyst Thomas Blakey raised his price target by 44% to $405, up from $282, while keeping a Buy rating. SNOW currently trades around $324.60, near its 52-week high of $341.95.
The stock has surged 95% over the past six months, and Blakey believes there is still more room to run heading into Q2 earnings on September 2.
Blakey’s call is based on expanding market multiples in software, particularly for companies tied to agentic AI and data-driven workloads. He sees Snowflake becoming the primary data and control layer for businesses deploying AI agents.
His checks point to healthy core consumption and growing AI workloads, even as competition and pricing pressure rise across the data and AI stack.
Blakey expects product revenue to beat the guidance midpoint by more than 3%, compared to a 5.5% beat in the prior quarter. Snowflake has posted 31% revenue growth over the last twelve months.
Cortex Code adoption was a key driver during Q2, with Blakey estimating 15-20% of the customer base now using it. He sees further upside as deployments move deeper into production.
Cortex AI is also seeing wide use across large enterprises, and the CoWork product is helping Snowflake reach non-technical users. Blakey noted investors will be watching whether these products translate into sustained consumption growth.
Ongoing cloud migrations and consolidation of data and AI workloads onto Snowflake’s governed platform are adding to the momentum.
The key question heading into earnings is whether new AI spending will outpace cost-cutting, contract renewals, and optimization efforts by customers.
Blakey expects remaining performance obligation growth of around 37%, in line with Street estimates. He added that Snowflake’s biggest renewals and buying activity usually land in Q4, so timing remains a factor.
On margins, Snowflake is expected to stay close to guidance. The company is willing to take some gross margin pressure from higher-mix AI workloads while continuing to expand operating margins.
The options market is pricing in a potential 12% move in SNOW stock following the earnings release.
Other analysts have also raised targets ahead of earnings. Benchmark raised its target to $360, TD Cowen lifted to $370 with a Buy, and Morgan Stanley reiterated Overweight with a $300 target and expects 34% product revenue growth in Q2. Guggenheim held its Neutral rating.
Wall Street carries a Strong Buy consensus on SNOW based on 27 Buys and 3 Holds over the past three months. The average price target sits at $360.61, implying about 8.8% upside from current levels.
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