KeyBanc Reiterates Overweight on Snowflake Inc. (SNOW) Following Survey

KeyBanc analyst Eric Heath reiterated an Overweight rating and $192.00 price target on Snowflake Inc. (NYSE: SNOW).

The analyst commented: "F1Q Customer and Partner Survey: We conducted our quarterly Snowflake survey of 15 customers and partners, several of whom we spoke with, to get an updated view on spend intentions, product traction, Iceberg adoption/implications, GenAI interest, and competitive dynamics. Overall, we view the survey as a slight downtick vs. our prior survey. We came away incrementally positive on: 1) improved uptake/feedback on Snowpark; 2) greater confidence that while some customers may optimize spend in a tighter macro, customers generally feel they are in a healthier usage state with Snowflake today vs. post-COVID; and 3) % citing Snowflake as more strategic than Databricks upticked q/q. We came away incrementally negative on: 1) 40% of customers have recently limited, or plan to limit, spend in light of the macro; 2) early indications of Iceberg facilitating workload shifts away from Snowflake; and 3) Cortex/GenAI adoption remains early, despite continued high interest.

Our estimates are unchanged as we see offsetting positives and negatives in our survey, from peer results thus far in C1Q and our conversations with management. From our survey and customer conversations, we come away more positive on Snowpark adoption (~3% FY25 revenues), but offset by cortex and iceberg."

For an analyst ratings summary and ratings history on Snowflake Inc. click here. For more ratings news on Snowflake Inc. click here.

Shares of Snowflake Inc. closed at $174.14 yesterday.

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