Snowflake Inc. (NYSE:SNOW) Maintains Strong Growth Prospects

• KeyBanc maintains an "Overweight" rating for Snowflake Inc. (NYSE:SNOW), raising the price target from $250 to $275.
• Snowflake reports a 32% growth in product revenue and a net revenue retention rate of 125%.
• Despite concerns over future profitability, Snowflake raises its revenue guidance for fiscal year 2026 to $4.395 billion, a 27% year-over-year increase.

Snowflake Inc. (NYSE:SNOW) is a cloud-based data-warehousing company that competes with tech giants like Amazon Web Services and Microsoft Azure. On August 28, 2025, KeyBanc maintained its "Overweight" rating for Snowflake, indicating confidence in its future performance. The stock price at that time was $200.39.

KeyBanc's decision to raise Snowflake's price target from $250 to $275 reflects optimism about the company's growth prospects. Snowflake's recent financial performance supports this view, with a 32% growth in product revenue for the second quarter, demonstrating strong demand for its services.

Snowflake's net revenue retention rate of 125% indicates that existing customers are spending more, which is a positive sign for future revenue growth. The company is also expanding its market reach by capitalizing on AI initiatives like Cortex AI and Snowpark. These efforts have increased its total addressable market from $170 billion to a projected $355 billion.

Despite these positive developments, there are concerns about future profitability. Snowflake achieved an 11% expansion in non-GAAP EBIT margin in Q2, but future quarters are expected to show declining margins. This could impact the company's bottom line, even as it raises its revenue guidance for fiscal year 2026 to $4.395 billion, a 27% year-over-year increase.

Currently, SNOW is trading at $200.39, having experienced a 3.11% rise. The stock has fluctuated between $196.66 and $202.54 today. Over the past year, it reached a high of $229.27 and a low of $107.13. With a market capitalization of approximately $66.86 billion and a trading volume of 16.99 million shares, Snowflake remains a significant player in the tech industry.