The recent developer and investor conferences held by Snowflake (NYSE:SNOW) and Databricks showcased significant advancements in analytics, data science, and AI, according to Oppenheimer’s Ittai Kidron. As a result, SNOW shares are trading higher at the time of writing. Kidron notes that both companies, despite starting with distinct areas of focus, have evolved to increasingly resemble each other. Snowflake, initially concentrating on data warehousing, has expanded its data stores and is focusing more on AI and machine learning. Meanwhile, Databricks, which began with data lakes, is now offering cloud-based data warehousing.
Kidron anticipates multiple victors in this rapidly evolving market due to the shift away from traditional systems and the mounting importance of integrated data/AI platforms. He envisions both Snowflake and Databricks as winners, snatching market share from legacy systems and cloud service providers. Further, Kidron sees Snowflake’s $10B revenue goal for fiscal 2029 as more feasible than a year ago, given their expected 30% operating and free cash flow margin.
Is SNOW a Good Buy Right Now?
Overall, analysts have a Moderate Buy consensus rating on SNOW stock based on 23 Buys, seven Holds, and one Sell assigned in the past three months, as indicated by the graphic above. Nevertheless, the average price target of $187.79 per share only implies 4.18% upside potential.
