Snowflake Price Target Cut to $270; Secures $200M OpenAI Deal
On Feb 18, Citi cut Snowflake’s price target from $300 to $270, maintaining a Buy rating and calling the 30% Q3 selloff excessive given its consumption model. Snowflake secured a multi-year $200M OpenAI partnership to offer generative AI services through its Cortex AI platform, driving further consumption and workload growth.
1. Citi Lowers Price Target
On February 18, Citi trimmed Snowflake’s 12-month price target from $300 to $270 while reaffirming a Buy rating. The firm cited the stock’s roughly 30% decline since fiscal Q3 results—driven by a modest earnings beat and AI spending concerns—as excessive relative to Snowflake’s consumption-based revenue model.
2. Strategic OpenAI Partnership
On February 2, Snowflake inked a multi-year $200 million agreement with OpenAI to provide its 12,600 global customers direct access to generative AI models through the Cortex AI platform. The deal spans AWS, Microsoft Azure and Google Cloud, positioning Snowflake to capture increased AI workloads and drive higher platform consumption.