Snowflake Buy Rating Holds Despite 30% Pullback, Price Target Cut to $270
Citi analyst Tyler Radke maintained a Buy rating on Snowflake while cutting his price target from $300 to $270, calling the 30% pullback an overreaction after Q3 2025 results. He highlighted $200M AI deals with Anthropic and OpenAI, Google Gemini collaboration, and 2,000+ AI-driven customers delivering 20-30% higher consumption.
1. Rating and Price Target Revision
Citi analyst Tyler Radke maintained a Buy rating on Snowflake while reducing his price target from $300 to $270 after the stock fell 30% following Q3 2025 results. The pullback was deemed an overreaction given the company’s modest earnings beat and resilient growth outlook.
2. AI Partnerships Boost
Radke underlined $200 million agreements with Anthropic and OpenAI for the Cortex AI platform, alongside collaboration with Google Gemini. These deals reflect enterprise demand for Snowflake’s AI-resilient consumption model and strengthen its positioning in the cloud data market.
3. Consumption Model Growth
Snowflake Intelligence has expanded to over 2,000 customers, up from 1,200 in Q3 2025, with select financial and retail clients reporting 20-30% higher data consumption. This growth underscores the platform’s ability to drive deeper usage and monetization.
4. Demand Outlook
Citi’s latest CIO survey indicates rising IT budgets within financial services, suggesting acceleration of cloud data migrations. Increased spending could bolster Snowflake’s Data Cloud ecosystem adoption and support sustained revenue growth.