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Snowflake Stock Sees Boost as Bank of America Raises Target — Melanin News | Melanin
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Snowflake Stock Sees Boost as Bank of America Raises TargetCulture

Snowflake Stock Sees Boost as Bank of America Raises Target

1w ago

Cloud data and artificial intelligence powerhouse Snowflake is making headlines as its stock recently saw a significant rebound, fueled by an optimistic revision from Bank of America. The investment banking division, Bank of America Securities, upped its price target for Snowflake Inc. (SNOW) to $205 from $195, while simultaneously reaffirming a "Buy" rating on the stock. This pivotal adjustment unfolded around May 19-20, 2026, just days before Snowflake's highly anticipated first-quarter fiscal 2027 earnings report, which is slated for release on May 27, 2026.

Bank of America's decision signals a bolstered belief in Snowflake's long-term execution, particularly within the burgeoning artificial intelligence business intelligence sector. The firm elevated its enterprise value to a calendar year 2027 estimated revenue multiple to 10.3 times from 9.8 times, specifically citing "higher execution confidence" in the company's AI business intelligence opportunities. This new target implies an approximate 20% upside potential from the stock's trading levels, which hovered around $171.27 at the time of these reports.

Snowflake Inc.
Snowflake Inc. Source

Koji Ikeda, a respected analyst at BofA Securities, was identified as the individual behind this updated target. Ikeda holds a notable position among Wall Street analysts, with a reported overall success rate of 55% and an average return per rating of 10.2% over a one-year timeframe. He conveyed that the firm does not anticipate the first-quarter results to alter its perspective that Snowflake is actively gaining market share in the AI business intelligence domain.

This wave of positive sentiment from Bank of America arrives after a challenging period for Snowflake's stock. The company's shares had reportedly "stumbled this year," recording a decline of 21.92% year-to-date and a nearly 6% loss over the past year as of May 20, 2026. This performance stands in stark contrast to a broader market that has generally trended upwards and an AI software sector that has frequently produced new market leaders. Despite this underperformance, Bank of America views the stock's current position as a compelling entry point, emphasizing that the AI business intelligence opportunity Snowflake is pursuing is expanding rapidly enough to outweigh the recent stock weakness.

Snowflake is widely recognized as a significant player in cloud data and artificial intelligence, positioned "at the center of the enterprise AI revolution." Sridhar Ramaswamy, who took over as CEO in February 2024, has clearly articulated the company's strategic focus. In a February earnings release, Ramaswamy stated, "We're activating world-class agentic capabilities on top of that platform." The company has demonstrated strong adoption of its AI features, with over 9,100 accounts utilizing them as of fiscal year-end 2026, including major clients such as Toyota Motor Europe and United Rentals.

Cloud computing
Cloud computing Source

Snowflake Intelligence, the company's agentic AI platform, saw rapid growth, expanding to nearly 2,500 accounts within just three months. Furthermore, Snowflake introduced over 430 new product capabilities in fiscal 2026, including Cortex Code, an AI coding agent, and enhanced its AI-driven data engineering through the acquisition of TensorStax. Brian Robins serves as the Chief Financial Officer, while Frank Slootman, the former CEO, now holds the position of Chairman of the Board.

The recent target raise by Bank of America is part of an ongoing narrative surrounding Snowflake's valuation and its role in the evolving AI landscape. Earlier in the year, on April 22, 2026, BofA had actually *lowered* its price target on Snowflake to $195 from $275. This previous adjustment was attributed to "meaningful downward revisions to revenue and free cash flow forecasts, updated views on growth potential, and rising execution risks tied to AI and competition," although the "Buy" rating was maintained. Prior to that, in March 2026, Koji Ikeda had reiterated a "Buy" rating and a $275 price target following Snowflake's announcement of Project SnowWork, an autonomous enterprise AI platform. In January 2026, Ikeda had also adjusted the price target from $310 to $275, reflecting a revised valuation model. These fluctuations underscore the dynamic nature of analyst expectations as the market assesses Snowflake's growth trajectory and competitive position in AI.

Other financial institutions have also offered their perspectives on Snowflake. Citizens analyst Patrick Walravens maintains an "Outperform" rating with a $325 price target, highlighting Snowflake's comprehensive platform that encompasses data work, analytics, AI, and applications, along with the release of over 430 new features in fiscal 2026. JMP Securities similarly upgraded Snowflake to a "Market Outperform" rating with a $325 price target. Conversely, UBS lowered its price target to $210 from $235, citing concerns regarding competition within the AI space, though it retained a "Buy" rating. KeyBanc has maintained an "Overweight" rating with a $200 price target, expressing positivity about Snowflake's expanding platform and its potential to benefit from AI investments by organizations.

Snowflake's financial results for the fourth quarter of fiscal 2026 showed product revenue reaching $1.23 billion, marking a 30% year-over-year growth. The company's remaining performance obligations stood at $9.77 billion, representing a 42% increase year-over-year. The company's market is projected to more than double to $355 billion by 2029, with an additional $50 billion attributed to its acquisition of Observe. A notable event on the horizon is the Snowflake Summit 26, scheduled from June 1-4, 2026, which is expected to be the company's largest conference, focusing on real-world AI deployments. This summit could offer further insights into the company's strategic direction and its impact on the evolving AI landscape, making it a key event for investors and industry watchers alike.