Strong consumer growth + increased usage of AI-powered agent CoCo! Oppenheimer raises price target for Snowflake (SNOW.US) to $400

According to Jinse Finance, Oppenheimer has raised Snowflake's (SNOW.US) price target from $295 to $400, while maintaining an “Outperform” rating on the stock. Analysts led by Ittai Kidron noted that their research shows Snowflake has demonstrated strong consumption levels and sales pipeline generation across regions and industries, robust momentum in large deals, accelerating migration activity, and a continuously expanding usage rate of the company’s AI programming intelligent agent, CoCo.

The analysts added that CoCo has quickly become a key part of Snowflake’s sales strategy, driving fast expansion of AI/intelligent agent workloads (mainly from customers who adopted CoCo early), accelerating migration of core data/analytics workloads, and serving as a new channel for customer engagement.

Kidron and his team stated: “Overall, we believe these factors will prompt customers to make larger commitments, shorten renewal cycles, and further accelerate year-over-year product revenue growth (with growth increasing to 34.7% from the previous 33.5%). The competition between Snowflake and Databricks remains fierce; however, both companies appear to be gaining market share primarily from traditional vendors. In general, we remain optimistic and expect product revenue to rise by 3%-4% to $14.687 billion; on average, this represents a year-over-year increase of 34.7%, compared to the market consensus of $14.19 billion and 30.1% growth. Meanwhile, Snowflake’s sales pipeline for the third quarter of fiscal year 2027 remains healthy.”