Bank of America lifts Snowflake target to $205, raises multiple to 10.3x
Bank of America raised Snowflake’s price target to $205 and increased its 2027 revenue multiple to 10.3x while maintaining a Buy rating ahead of Q1 results. Analysts said a Q1 product revenue beat above 2.4% would accelerate growth toward 30%+ and noted Cortex Code adoption by half of customers.
1. Price Target and Rating
Bank of America raised Snowflake’s price target to $205 from $195, increased its valuation multiple to 10.3x on 2027 estimated revenue (up from 9.8x), and reiterated a Buy rating ahead of the May 27 Q1 report.
2. Earnings Beat Threshold
Analysts highlighted that a product revenue beat above 2.4% would maintain roughly 30% year-over-year growth and could signal acceleration, noting recent beats have moderated from 5.1% to 2.4%.
3. Cortex Code Adoption
The firm noted Cortex Code adoption across about 50% of Snowflake customers, with early data showing an 11% higher consumption rate among users versus a control group.
4. Leadership Transition
Following March’s CRO departure, the appointment of long-time executive Jonathan Beaulier aims to ensure continuity and execution as Snowflake enters its next growth phase.