Barclays Says Snowflake’s (SNOW) Strong Run Leaves Limited Upside, Downgrades Stock

Core Viewpoint - Snowflake Inc. has been downgraded by Barclays from Overweight to Equalweight, with a new price target of $250, down from $290, reflecting strong fundamentals but limited upside potential after a significant price increase [1][2]. Group 1: Company Performance - Snowflake is recognized as a "best-in-class software" stock, with one of the strongest top-line growth rates and above-average free cash flow margins in its sector [2]. - The company's execution has improved under CEO Sridhar Ramaswamy, contributing to positive momentum for the stock [2][3]. Group 2: Analyst Ratings History - The downgrade represents Barclays' third rating change for Snowflake in the past three years, following an upgrade to Overweight in the 2025 Outlook and a previous downgrade to Equal Weight in the 2024 Outlook [3]. - The improved execution on product and go-to-market strategies under the current CEO has been a key factor in the stock's momentum [3].