Citi Calls Snowflake Selloff Overdone After 30% Drop, Trims Target to $270
Snowflake shares have dropped over 30% since Q3 results, prompting Citi’s Tyler Radke to reiterate a Buy rating but lower the price target to $270 from $300 due to valuation pressure. He cited a $200M Anthropic and OpenAI deal, 20–30% higher Intelligence consumption and mid-to-high 20% 2027 revenue growth.
1. Analyst Rating and Price Target
Snowflake shares have fallen more than 30% since Q3 results, prompting Citi analyst Tyler Radke to reiterate a Buy rating and reduce his price target to $270 from $300 due to software multiple compression.
2. AI Deals Drive Momentum
Radke’s channel checks identified a $200M deal involving Anthropic and OpenAI and collaboration with Google Gemini, indicating strong customer demand for Snowflake Cortex as monetization ramps following a disclosed $100M in new AI deals.
3. Consumption Growth and Fiscal 2027 Outlook
Snowflake Intelligence consumption rose 20% to 30% for financial services and retail customers, and Radke expects fiscal 2027 revenue growth in the mid-to-high 20% range supported by AI pipeline expansion and the Observe acquisition.