Outstanding performance sparks Wall Street celebrations: Snowflake (SNOW.US) surges 16%, major banks collectively raise target price

Zhitong Finance APP has learned that after releasing its better-than-expected fiscal year 2027 Q2 financial results, cloud data platform Snowflake (SNOW.US) saw its stock price surge over 16% on Thursday, triggering a wave of target price hikes from Wall Street.

Jefferies analyst Brent Thill stated in a report to investors, "CoCo has become SNOW's killer AI capability, driving product revenue to exceed expectations by more than 5% for the second consecutive quarter, with growth accelerating for the third consecutive quarter and achieving a record operating margin. Product revenue growth reached 37%-38% in Q3, with FY2027 guidance raised by 5 percentage points to 36%, both far above market expectations. CoCo added over 2,000 new accounts quarter-on-quarter, and after two quarters of general availability (GA), now covers more than 60% of the installed base. Management describes it as the easiest product to sell in SNOW's history."

Snowflake CoCo (also known as Cortex Code) is a data-native AI coding agent designed to simplify and speed up the data development lifecycle.

Jefferies maintains its "Buy" rating and raises its target price from $385 to $430.

Similarly, Evercore ISI maintains its "Outperform" rating and raises its target price from $360 to $430.

Evercore analyst Kirk Materne said in a Thursday report, "Management also notably pointed out that the need for model selection is a key demand driver, with cost optimization as the main reason; although this may seem like a hurdle, it's actually a competitive advantage for SNOW, as its ability to automatically route to the best model is driving incremental demand. Finally, operating margin is at about 15%, well above the approximately 12.5% guidance, demonstrating management's ability to deliver operating leverage while achieving mid-to-high 30% growth rates."

Meanwhile, BTIG reiterated its "Buy" rating and raised its target price from $340 to $424.

"Overall, we believe this was another outstanding quarter," BTIG analysts Gray Powell and Trevor Rambo said in a report. "Product revenue exceeded the guidance midpoint by $74 million, marking the largest upside versus guidance in company history. In addition, SNOW's sequential net product revenue increase was $158 million, surpassing last quarter’s then-record of $108 million and marking a new all-time high in sequential quarterly dollar growth. AI is driving urgency to integrate data onto the SNOW platform; CoCo and CoWork are seeing broader adoption and monetization, and AI users’ consumption on the core platform has also increased dramatically."

JPMorgan reiterated its "Overweight" rating and significantly raised its target price from $285 to $426.

"Full-year FY2027 product revenue guidance was raised to $6.07 billion, representing 36% year-on-year growth and about $213 million above consensus estimates. This now reflects management's confidence that Q3 product revenue growth will slightly accelerate from Q2," JPMorgan analyst Samik Chatterjee noted in the report. "Furthermore, the raised full-year product revenue guidance implies a modest slowdown in Q4 product revenue growth after a strong Q3. We believe this reflects management's conservative stance, leaving room for significant guidance hikes in the remainder of the fiscal year."

After the latest Snowflake earnings report, several other financial institutions also raised their target prices for the stock. Oppenheimer raised its target price from $400 to $475; Piper Sandler from $320 to $450; Citi from $395 to $490; Wells Fargo made a slight increase from $500 to $525.