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Investing.com - Guggenheim maintained its Neutral rating on Snowflake Inc. (NYSE:SNOW) on Wednesday, citing solid field checks for the fiscal third quarter of 2026. The data cloud company has shown impressive momentum with a 62.11% price return year-to-date and 25.13% over the past six months.
The investment firm noted that strategic go-to-market changes and product enhancements are driving strength according to their conversations with partners. Guggenheim believes the third quarter results look "very doable" as current estimates imply no new annual recurring revenue and a decline in retention, potentially providing room for greater than normal upside to consensus. This optimism comes despite InvestingPro data showing the company is not profitable over the last twelve months, with a diluted EPS of -$4.15.
Partner conversations highlighted continued positive migration trends and activity as seen over the past four quarters, though artificial intelligence monetization remains less apparent, which Guggenheim describes as "par for the course at this juncture."
The firm observed that Snowflake management is pushing to leverage third parties, including system integrators and software vendors, which partners believe is broadening the company’s ecosystem and creating a resonating value proposition for Snowflake’s core data warehousing solutions. This strategy appears to be working, with revenue growth at 28.37% according to the latest data.
Snowflake shares are currently trading at 16.9 times enterprise value to next twelve months consensus product revenue and 59.7 times next twelve months consensus free cash flow, with the company scheduled to report earnings on December 3 after market close. InvestingPro analysis indicates the stock appears overvalued compared to its Fair Value, with a high Price/Book ratio of 35.74. However, analysts are predicting the company will be profitable this year, with an EPS forecast of $1.29 for fiscal 2026. For deeper insights into Snowflake’s valuation and over 30 additional ProTips, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Snowflake Inc. has announced a new integration with NVIDIA, enhancing its AI Data Cloud platform by incorporating NVIDIA’s CUDA-X libraries to accelerate machine learning workflows. This collaboration allows data scientists to utilize GPU-accelerated algorithms without modifying existing code, potentially increasing AI workflow speeds significantly. On the financial front, Jefferies has raised its price target for Snowflake to $300, citing strong demand driven by artificial intelligence as a key growth factor. Oppenheimer has reiterated its Outperform rating for Snowflake, projecting a strong third quarter with potential revenue growth of 29-30%, despite competitive pressures from Databricks. Meanwhile, KeyBanc has maintained its Overweight rating with a $275 price target, noting positive indicators from its customer survey. Bernstein has also reiterated its Market Perform rating, highlighting stabilization in key business metrics and robust demand momentum. These developments reflect a period of strategic growth and strong market interest for Snowflake.
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