Jefferies has reaffirmed its Buy rating on Snowflake Inc. (NYSE: SNOW) and kept its price target at $300.00, identifying the cloud data company as among the clearest beneficiaries of artificial intelligence within the public software landscape. The firm’s target implies a notable upside relative to the recent share price of $156.71, while the broader analyst community consensus remains a strong buy at 1.56.
In its assessment, Jefferies points to several interlocking positives. The research note highlights robust AI tailwinds, the rollout of new product initiatives such as Snowflake Intelligence, rising sales productivity metrics, widening strategic partnerships and accelerating early signals in the business. One specific metric cited as evidence of momentum is a 37% increase in revenue performance obligations, which Jefferies interprets as a leading indicator of future revenue recognition.
Snowflake’s top-line momentum is notable in the data cited: revenue rose 28.48% over the last twelve months. The analyst community cited in the research expects the company to reach profitability in the current fiscal year, a milestone that underpins the favorable stance.
Despite these tailwinds, Snowflake’s share price has experienced significant pressure year to date. Jefferies characterizes the roughly 27% YTD decline as "overly harsh" and argues the current market capitalization of about $55 billion presents an attractive risk-reward profile. The firm also calls attention to what it frames as a valuation gap of roughly $79 billion versus database competitors.
Data from InvestingPro was cited in the research as corroborating the sharp pullback, showing a 28.56% year-to-date drop and indicating the stock is trading below its Fair Value estimate. InvestingPro Tips referenced in the note also point to a relative strength index that suggests SNOW is in oversold territory.
Jefferies said recurring conversations with technology executives and industry leaders consistently place Snowflake among the public software vendors most directly positioned to benefit from AI adoption. The bank expects that the coming 3-5 years will see "an explosion of AI apps," many of which it anticipates will be built on or supported by the Snowflake Data Cloud, creating material opportunities for incremental growth.
The research note also summarizes a series of recent company developments that speak to execution and partnerships. Snowflake has entered a $200 million multi-year agreement with OpenAI to integrate OpenAI’s models directly into Snowflake’s platform, making models such as GPT-5.2 available via Snowflake Cortex AI to the company’s roughly 12,600 global customers. That collaboration is presented as a concrete example of how Snowflake is expanding its AI-enabled product set.
On the corporate governance front, Snowflake announced the resignation of board member Jeremy Burton following the company’s acquisition of Observe, Inc. The company stated that Burton’s departure was not the result of any disagreement with Snowflake.
Other firms have reiterated positive stances on the shares. DA Davidson maintained a Buy rating with a $300 price target and expressed confidence in Snowflake’s ability to navigate headwinds in the software sector. Separately, United Rentals has rolled out an AI-powered Business Intelligence Agent that uses Snowflake’s technology across its branch network to enhance data analysis capabilities.
Collectively, the observations cited by Jefferies — from product catalysts and partnerships to improving demand signals — form the basis of its continued Buy recommendation, even as the stock’s recent performance has left it trading below select valuation benchmarks.