Morgan Stanley resets Snowflake stock price target by $170

Snowflake recently delivered one of its strongest quarters in years, prompting Wall Street to take notice.

In an investor note shared with me, Morgan Stanley analyst Sanjit Singh raised his price target on the cloud data company to $470 from $300, keeping his "Overweight" rating intact.

Valued at a market cap of $106 billion, SNOW stock is priced at $356 at the time of writing. Over the last three years, SNOW stock has more than doubled.

A higher stock price target comes after Snowflake posted its third straight quarter of accelerating revenue growth, a trend that's rare for a company of its size.

Singh called it "an AI-powered growth flywheel that is still in the early innings."

Snowflake (SNOW) reported second-quarter fiscal 2027 results on Sept. 2, and the numbers topped expectations across the board.

Product revenue came in at $1.49 billion, up 37% year over year, accelerating from 34% growth in the prior quarter and beating both the company's own guidance and Wall Street consensus.

According to Morgan Stanley's note, the results were "particularly strong against a ~530bps tougher YoY comparison," meaning Snowflake grew faster even though it was being compared against a much stronger quarter from a year ago.

Here's a quick snapshot of the key numbers from the quarter:

Product revenue : $1.49 billion, up 37% year over year

Net new customers added : 692, up 32% year over year

Total customers : 14,554, up 22% year over year

Customers spending over $1 million annually : 828, up 27% year over year

Snowflake CEO Sridhar Ramaswamy pointed to the breadth of that growth on the company's earnings call, stating:

"We see the acceleration come from a very broad swath of customers. It is not concentrated, for example, with, let's say, AI native companies. They continue to be a small part of our overall revenue stream."

Morgan Stanley raises Snowflake stock price target

Morgan Stanley's bullish call centers on what it describes as a flywheel effect.

Snowflake's AI products, mainly its CoCo (formerly Cortex Code) and CoWork tools, are bringing in new customers while also pushing existing customers to use more of Snowflake's core data platform.

Company management estimated that AI products drove about half of the quarter's growth acceleration, with the rest coming from strength in the core business, including faster data migrations from legacy systems.