Citi analysts reduced their price target for Snowflake (NYSE:SNOW) from $200 to $183 while maintaining a Buy rating on the stock. The adjustment reflects slightly lowered fiscal year 2026 estimates but underscores optimism about the company’s long-term opportunities.
Snowflake’s third-quarter results were anticipated to show solid performance, with product revenue expected to beat estimates by 2-3% and a likely upward revision to its conservative fourth-quarter guidance. Positive factors included larger customer ramps, increased adoption of GenAI products like Cortex, and continued stabilization in hyperscaler demand. However, these strengths were partially offset by rising competition and declining win rates, creating a mixed picture.
Despite the stock underperforming since the last quarter, the analysts viewed the current valuation—around 10x EV/Sales, with a free cash flow multiple comparable to Microsoft—as a compelling entry point. Snowflake’s growth stabilization and the emerging GenAI product cycle under CEO Ramaswamy were highlighted as key drivers for future performance. The revised price target reflects cautious near-term sentiment while maintaining a bullish long-term outlook.