Wells upgrades Snowflake on favorable position into 2025

Wells Fargo upgraded Snowflake (SNOW) to Overweight from Equal Weight with a price target of $200, up from $150. The firm says the 2025 setup for software is “showing shades” of 2024, leading to questions around if the sector setting up for another first half of the year pullback or more sustained momentum. Wells’ year-end chief investment office survey suggests “incrementally healthier budget growth” in 2025 versus 2024, with 95% of respondents suggesting budget growth in 2025. Snowflake shares appear more favorably positioned heading into 2025, potentially set to benefit from a “budding” product cycle, a possible rotation towards software, and a more attractive entry point with the recent pullback from highs, the analyst tells investors in a research note.