Bank of America tweaks Snowflake stock price target before earnings

Snowflake has had a rough stretch. The stock is down 21.92% year-to-date and has lost nearly 6% over the past year, according to Yahoo Finance. That’s a stark contrast to a broader market that has pushed higher and an AI software sector that has minted new winners almost weekly. But Bank of America is not walking away.

BofA Securities raised its price target on Snowflake (SNOW) in a note shared with TheStreet, maintaining a Buy rating ahead of the company's May 27 earnings report. At $171.27, that target implies roughly 20% upside from current levels.

The bank's message is pointed: the AI business intelligence opportunity Snowflake is competing for is growing fast enough that the stock's year-to-date underperformance looks more like an entry point than a warning sign.

Analyst Koji Ikeda, who ranks 857 out of 12,237 Wall Street Analysts, noted that BofA does not expect anything from the first-quarter results to change their view that Snowflake is gaining market share in the AI business intelligence opportunity. May 27 will be the test.

BofA Securities raised Snowflake's price target to $205 from $195

BofA raised its price target from $195 to $205, reflecting a specific valuation framework - not a revision to financial forecasts. The firm raised its enterprise value to a calendar year 2027 estimated revenue multiple of 10.3 times from 9.8 times, citing higher execution confidence, according to the note.

That distinction matters. BofA is not increasing estimates because results have improved in the near term. It is paying a higher multiple because its confidence in Snowflake's ability to execute over the next 18 months has increased, specifically around the AI business intelligence opportunity.

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The firm noted some concern around near-term Middle East demand headwinds but framed them as immaterial. Middle East revenue is estimated at approximately 1% of Snowflake's total, according to the note. That level of geographic concentration is too small to move the needle on a company targeting $5.66 billion in full-year fiscal 2027 product revenue.

The broader analyst picture is divided. According to Investing.com, JMP Securities and Citizens both carry $325 price targets with Market Outperform ratings. UBS and Evercore ISI have pulled back their targets to $210 and $200, respectively, citing competition concerns and core cloud data warehousing deceleration.