Snowflake Inc (NYSE:SNOW) might already be up 35% this year, but UBS says there’s still plenty of runway ahead.
The firm upgraded the data cloud company to Buy from Neutral, lifting its 12-month price target to US$265 from US$210—about 27% above where shares closed at US$209.15.
In a new note, UBS analysts said they’re “increasingly confident” that Snowflake is in the early stages of a long-term investment cycle in enterprise data infrastructure—fueled by the growing demand for AI-ready data.
“Snowflake is at the center of a significant shift as enterprises ramp up spending on data platforms to power AI applications,” analyst wrote. UBS’s checks with customers and partners, including takeaways from Snowflake’s Summit in San Francisco, point to stronger spending trends and momentum across the board.
What’s changed? UBS says Snowflake has done a better job than expected expanding beyond its core data warehouse product. And while Databricks remains a top competitor, the overall market is growing fast enough for both companies to thrive.
Even with recent gains, UBS argues it’s not too late to buy in. “If this data investment cycle has duration, as we think it does, then it isn’t too late,” analysts wrote.
UBS now expects Snowflake to grow revenue by 28% in 2026, slightly ahead of company guidance. At 13 times revenue and 51 times free cash flow on 2026 estimates, the firm sees the valuation as fair for a company leading one of the most important infrastructure shifts in tech today.
Shares of Snowflake were up around 1.1% on Wednesday at nearly $211.50.