KeyBanc has trimmed its price target for Snowflake Inc. (NYSE:SNOW) to $235 from $285 while retaining an Overweight rating on the data cloud company. Snowflake shares were trading at $176.08, representing a market capitalization of $60.25 billion.
The analyst action follows a sector-wide reassessment of valuation metrics - KeyBanc specifically cited lower peer multiples as the reason for the reduced target, even as other indicators for Snowflake remain constructive.
This quarter KeyBanc surveyed 20 Snowflake and Databricks customers and partners. The firm described the survey outcomes as incrementally favorable for Snowflake, highlighting stronger spend intentions, the presence of AI-driven momentum, and wider adoption of the vendor’s product set. Those customer-level signals sit alongside reported company figures showing Snowflake was not profitable over the last twelve months, while achieving 28.5% revenue growth to $4.39 billion, according to the same data source.
KeyBanc analyst Eric Heath said the firm continues to believe Snowflake is well positioned to capture investments in organizational AI and benefit from the expansion of its platform capabilities. That conviction underpins KeyBanc’s sustained Overweight stance despite the lower price objective.
Corporate developments at Snowflake have been active. The company disclosed its acquisition of Observe, Inc., an event that coincided with the resignation of Jeremy Burton, a Class III director who served on the company’s Cybersecurity Committee. The company explicitly stated that Burton’s departure was not related to disagreements over operations or policies.
Snowflake also announced a $200 million multi-year collaboration with OpenAI to embed OpenAI’s models directly into Snowflake’s platform for enterprise customers. The agreement will provide access for Snowflake’s 12,600 global customers to OpenAI models, including GPT-5.2, through Snowflake Cortex AI.
On the customer-implementation front, United Rentals rolled out an AI-driven Business Intelligence Agent powered by Snowflake across its network of more than 1,600 branches, enabling real-time analysis via natural language queries.
Market analysts remain split on the name. Jefferies reiterated a Buy rating on Snowflake, pointing to the company as a clear beneficiary of artificial intelligence trends and emphasizing AI tailwinds and expanding partnerships. At the same time, competitive product moves in the cloud ecosystem represent a watch point: Google’s new BigQuery "global queries" feature allows users to query data across multiple geographic locations with a single SQL statement, potentially representing a headwind to Snowflake’s market position.
Overall, KeyBanc’s price target revision reflects sector valuation pressure even as customer feedback, strategic partnerships, and revenue momentum provide supporting signals for Snowflake’s growth trajectory.
Key points
- KeyBanc cut Snowflake’s price target to $235 from $285 but kept an Overweight rating, citing lower peer multiples.
- Customer and partner surveys show improved spend intentions, AI-driven tailwinds, and broader product adoption.
- Corporate moves include the acquisition of Observe, a $200 million OpenAI partnership, and a major United Rentals deployment; revenue rose 28.5% to $4.39 billion while the company remained unprofitable over the last twelve months.
Risks and uncertainties
- Sector valuation declines - lower peer multiples prompted the price target cut and could pressure Snowflake’s market valuation; this impacts cloud and enterprise software sectors.
- Competitive feature releases - Google’s BigQuery "global queries" may challenge Snowflake’s differentiation in multi-region data management; this is a potential headwind for cloud data platforms.
- Profitability - Snowflake was not profitable over the past twelve months, introducing execution and margin risks for investors focused on near-term earnings; this affects enterprise software and SaaS valuations.