Snowflake has surged 46% in six months, and Wolfe Research believes the momentum will continue as demand trends improve.
Snowflake Inc. (SNOW) stock jumped more than 3% in pre-market trade on Tuesday after Wolfe Research upgraded the stock ahead of its fourth-quarter (Q4) earnings report, scheduled for Feb. 26.
If pre-market gains hold, Snowflake’s stock will be approaching its highest level in nearly a year, last seen in March 2024.
Wolfe Research analyst Alex Zukin upgraded the cloud-based data storage company to ‘Outperform’ from ‘Peer Perform’ with a $235 price target, implying an upside of 25% from current levels, according to The Fly.
Zukin cited stronger core consumption trends, easing competitive pressures from hyperscalers, and improving product momentum as key drivers for the stock.
In a research note to investors, he wrote that channel checks are "clearly pointing" toward stabilizing and even improving consumption trends, with numbers in recent quarters reinforcing that trend.

On Stocktwits, retail sentiment around Snowflake remained in the ‘bullish’ zone accompanied by ‘high’ levels of chatter.
One user noted that while the stock may continue rising, the upward trend could become more volatile.
Despite Wolfe’s optimistic outlook, the broader analyst consensus is more tempered.
The average price target on Snowflake is $191.29, according to Koyfin, indicating an upside of just 1.97% from current levels.
Snowflake’s stock has gained nearly 20% year-to-date and is up 46% over the past six months.
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