Goldman Cuts Snowflake Target to $246; RBC Lowers to $245 and Seals $200M OpenAI Deal
Goldman Sachs cut its Snowflake price target to $246 from $286 and maintained a Buy rating, while RBC Capital lowered its target to $245 from $300 citing software headwinds and AI monetization concerns. On February 2, Snowflake launched a $200 million OpenAI collaboration to deliver integrated AI models to 12,600 customers.
1. Analyst Price Target Cuts
On February 11, Goldman Sachs lowered its Snowflake price target from $286 to $246 while maintaining a Buy rating ahead of the fourth-quarter earnings report. On the same day, RBC Capital trimmed its target to $245 from $300, pointing to software sector headwinds and prioritizing firms with clearer paths to AI revenue.
2. Sector Headwinds and AI Focus
Analysts highlighted year-to-date multiple compression in the broader software industry and noted heightened investor caution toward companies without well-defined AI monetization strategies. RBC emphasized a preference for businesses demonstrating consolidation across cyber security, data infrastructure and vertical SaaS amid ongoing market pressure.
3. OpenAI Collaboration
On February 2, Snowflake unveiled a $200 million OpenAI partnership to integrate AI models directly into its platform. This multi-year agreement grants Snowflake’s 12,600 customers access to AI capabilities via Snowflake Cortex across all major cloud environments, supported by joint go-to-market initiatives targeting enterprise AI deployments.