Snowflake (SNOW) stock is in the spotlight on Sept. 28 after PhilipCapital initiated coverage on the cloud data platform company with a “Buy” rating. Analyst Alif Fahmi assigned a bullish $423 price target on SNOW this morning, signaling potential upside of about 30% through the next 12 months.
His research note is particularly significant as Snowflake shares have already been in a huge uptrend, currently up more than 50% versus the start of 2026.
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www.barchart.comFahmi’s Bullish View on Snowflake Stock
Fahmi’s constructive stance on SNOW stock hinges mostly on “rising enterprise data volumes and artificial intelligence (AI) adoption.”
According to him, the global data lake market will grow at a compound annualized rate of nearly 24%, hitting a valuation of about $46 billion by the end of this decade. And this broader surge stands to directly expand Snowflake’s total addressable market (TAM).
Snowflake’s next-gen AI products, including CoCo and CoWork, accounted for roughly half of the company’s Q2 growth, which marked its “strongest performance in three years,” the analyst added.
AI Adoption to Drive SNOW Shares Higher
PhilipCapital emphasized that Snowflake stock is “uniquely positioned” to capture value from AI since about 95% of the firm’s overall revenue is levered to customer consumption rather than flat SaaS subscriptions.
Because AI workloads demand notably higher compute power than traditional analytics, AI adoption is resulting in greater credit usage and customer spending.
In the AI era, SNOW is poised to continue driving growth through a dual engine of acquiring new clients and expanding consumption among the existing ones, Fahmi concluded.
Note that Snowflake has a history of gaining 5.63% on average in October, followed by a nearly 15% rally in November — a seasonal pattern that further improves its near-term appeal.
What’s the Consensus Rating on Snowflake?
PhilipCapital is far from being alone in seeing SNOW shares as undervalued and recommending owning them for the long term.
According to Barchart, the consensus rating on the cloud data platform giant sits at “Strong Buy,” with the mean price target of about $426 indicating potential upside of about 30% from here.
www.barchart.com On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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