Jefferies raised its price target for Snowflake to $300 from $270, implying 28% upside from current beaten-down levels.
- Jefferies analyst expects the company to benefit from growing AI adoption and conservative guidance.
- Snowflake stock currently trades at a forward price-earnings (P/E) multiple of 174.
- Snowflake stock is up more than 51% this year.
Snowflake, Inc. (SNOW) stock, which rose to its highest level in nearly four years in early November, hasn’t sidestepped the tech-led sell-off that has occurred since then. The stock is now down more than 16% from the early November high of $280.67.
After falling 4.34% to $234.03 on Friday, the stock is trading up more than 1% in overnight trading, according to Yahoo Finance.
Strong Demand Trends
Jefferies analysts said a partner survey showed robust demand for Snowflake, catalyzed by artificial intelligence (AI), according to a summary of the note available on the Fly. Bozeman, Montana-based Snowflake is a cloud-based AI-powered data storage company.
Encouraged by the positive checks, analysts at the firm see the company having a strong second half of 2025. They also expect the company to benefit from growing AI adoption and conservative guidance.
Snowflake is a top pick at Jefferies. As such, the firm raised its price target for the Snowflake stock to $300 from $270. The updated price target implies 28% upside from the current beaten-down levels.
Snowflake has been quick to announce enterprise partnerships recently. The company announced a new integration with Nvidia to accelerate machine learning (ML) workflows directly within its platform, as well as a collaboration with SAP to enable organizations to seamlessly leverage Snowflake’s AI Data Cloud and SAP Business Data Cloud.
It also unveiled Snowflake Intelligence, an enterprise-grade intelligence agent, and new developer tools to support agentic AI development.
What Retail Feels About Snowflake
On Stocktwits, retail sentiment toward Snowflake remained ‘bearish’ as of late Sunday, while the message volume was at ‘normal’ levels. Sentiment has deteriorated from the ‘bullish’ mood seen a month ago.
Does Snowflake Stock Flash A Buy Signal?
Snowflake stock currently trades at a forward price-earnings (P/E) multiple of 174 and an enterprise value/sales (EV/S) multiple of 15.1. The forward P/E ratio for Snowflake is notably higher than the 21.5 median P/E for the software industry.
Sell-side apparently thinks valuation is justified. According to Koyfin, the average price target for the stock is $271.76, implying 16% upside potential.
Technically, the trend is broadly to the upside, with the shorter-term simple moving averages (SMAs) trading above their longer-term counterparts. A golden cross occurred in December, when the 50-day SMA moved above the 200-day SMA, and it has since then held above the latter. The 14-day relative strength index (RSI) is at 33, suggesting oversold levels.
The short interest in the stock is 3.70%, up from the year’s low of around 2.80% in June. Snowflake stock is up more than 51% this year.
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