Snowflake Stock: Five-Star Analyst Says the Window Isn’t Closed Yet

Wall Street’s golden child just doubled down—Snowflake’s got room to run, insists a top-tier analyst. Even after its recent tear, the data cloud darling might still be a buy. But let’s be real—when has a bullish analyst ever said 'sell' before the bonus pool dries up?

The case for Snowflake? Scalability, sticky clients, and that sweet, sweet recurring revenue. The case against? Try 'valuation' and 'the fact that tech hype cycles have expiration dates.'

One thing’s certain: in a market where 'AI-washed' startups fetch billion-dollar valuations, Snowflake’s actual revenue growth almost looks... reasonable. Almost.

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Indeed, UBS noted that Snowflake is one of the companies benefiting from the need for “AI-ready” data, along with Palantir (PLTR) and Databricks. The analysts also pointed out that more software companies like Salesforce (CRM), ServiceNow (NOW), and SAP (SAP) are moving into the data space, which they see as evidence of the growing demand for data. As a result, UBS believes that Snowflake investors haven’t fully priced in this growth potential yet and that there’s still time to invest before the full AI boom happens.

Separately, Morgan Stanley kept its Equal-weight rating and $200 price target despite Snowflake’s strengths in data security, ease of use, and multi-cloud capabilities. While the analysts led by five-star rated Keith Weiss praised the company’s role in secure AI integration, they remain cautious about the stock’s high valuation, which sits at about 55 times the expected free cash FLOW for 2026. Nevertheless, it is worth mentioning that Snowflake’s expansion into data engineering and AI has significantly increased its market opportunity and might justify its premium valuation.

Is SNOW a Good Buy Right Now?

Overall, analysts have a Strong Buy consensus rating on SNOW stock based on 34 Buys, six Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average SNOW price target of $225.03 per share implies 6.4% upside potential.