1 Wall Street Analyst Thinks Snowflake Stock Is Going to $235. Is It a Buy?

Core Viewpoint - Snowflake's stock has seen a significant increase of 47% over the last six months, with an analyst upgrade to an outperform rating and a price target of $235, indicating a potential upside of 24$189 [1] Group 1: Stock Performance and Analyst Ratings - Wolfe Research analyst Alex Zukin upgraded Snowflake's stock to an outperform rating with a price target of $235, suggesting a 24$189 [1] - The stock's price-to-sales multiple has nearly doubled recently, indicating a shift in valuation [2] Group 2: Revenue Growth and Product Outlook - Despite challenges such as a CEO change and increasing competition, Snowflake has launched new cloud products, including Snowflake Cortex, which is gaining strong adoption [3] - Management has raised its product revenue outlook for the full year, with product revenue growing 29% year-over-year in fiscal Q3, and guidance suggests the same growth rate for the full year [4] Group 3: Future Projections and Valuation - For Snowflake to reach the analyst's price target of $235, it must meet Wall Street's consensus estimate of$4.43 billion in revenue next year while maintaining its current price-to-sales multiple [5] - To sustain returns beyond 2025, Snowflake needs to continue innovating and improve margins, as its net loss has exceeded $1.1 billion on a trailing-12-month basis [6]