Snowflake Stock Climbs on Barclays Upgrade, But Retail Stays Skeptical
Barclays’ upgrade, highlighting Snowflake’s focus on AI trends and accelerated product development, follows Deutsche Bank’s price target increase and Wells Fargo’s upgrade earlier this week.
Snowflake Inc. (SNOW) stock rose over 1% in mid-day trading on Friday following an upgrade from Barclays, which shifted its rating to ‘Overweight’ from ‘Equal Weight’ while maintaining a price target of $190.
Barclays highlighted Snowflake’s evolving AI-driven product momentum under its new management, projecting significant growth contributions from newly matured offerings in fiscal 2026.
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The brokerage emphasized that Snowflake’s focus on AI trends and accelerated product velocity positions it for meaningful progress this year, according to TheFly.
This comes after Deutsche Bank raised the firm's price target on Snowflake to $210 from $190 on Wednesday and kept a ‘Buy’ rating on the shares, citing that the software will outperform in 2025.
It anticipates improving fundamentals and AI-driven demand trends to support software sector growth to offset "slow-but-ramping" generative AI adoption, elevated capex, and an ongoing scaling laws debate.
Wells Fargo also upgraded the stock to ‘Overweight’ from ‘Equal Weight’ earlier this week, increasing its price target to $200 from $150.
Wells Fargo noted Snowflake’s favorable position for 2025, citing healthier budget growth among enterprise clients and a budding product cycle. However, the firm cautioned about potential volatility, reminiscent of early 2024 pullbacks in the software sector.
However, retail sentiment on Stocktwits was ‘bearish’ even as chatter increased to ‘high’ from ‘normal’ levels.
Some users pointed to bearish technical patterns, like an “inverse cup and handle,” signaling potential further declines.
Others expressed interest in buying shares if prices dip further.
However, one user pointed to the company’s turnaround over the last quarter.
Snowflake’s stock has declined over 17% in the past year, weighed down by slowing growth rates and increasing competition from cloud-neutral software providers and public cloud giants.
The company also faced legal investigations into potential governance lapses during that time, stemming from a 28% stock drop in 2022 following reduced revenue forecasts.
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Read also: Retail Sentiment On Wolfspeed Stock Remains Bullish Despite Historic Drop To 27-Year Low
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