Optimistic Buy Rating for Snowflake Amid Strong Growth Potential and AI Developments

Snowflake, the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Derrick Wood from TD Cowen maintained a Buy rating on the stock and has a $275.00 price target.

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Derrick Wood has given his Buy rating due to a combination of factors that highlight Snowflake’s strong growth potential. The company’s core Cloud Data Warehouse (CDW) and Data Engineering segments continue to show robust demand, with positive developments in AI, although revenue from AI remains relatively small. Wood anticipates a solid performance in the upcoming quarter, expecting Snowflake to exceed growth targets, though not at the same level as the previous quarter’s exceptional results.
Despite concerns that investor expectations might be high, Wood remains optimistic about Snowflake’s medium-term prospects. The company’s recent strong quarterly performance, driven by significant workload migrations from large customers, has led to a notable increase in share value. Additionally, Snowflake’s expanding role as a central data hub for AI agents and its growing popularity in data pipelines further support Wood’s positive outlook. He expects continued buying interest, especially if there is any pullback in share prices.

In another report released on November 17, Bank of America Securities also reiterated a Buy rating on the stock with a $310.00 price target.