Strong consumer growth + increased usage of AI smart agent CoCo! Oppenheimer raises Snowflake (SNOW.US) target to $400.

Oppenheimer raised Snowflake's (SNOW.US) target price from $295 to $400, while maintaining an "Outperform" rating on the stock. Analysts led by Ittai Kidron stated that their research on Snowflake shows strong performance in consumption and sales pipeline generation across various regions and industries, robust momentum in large deals, accelerating migration activities, and an expanding usage of the AI programming smart agent CoCo. The analysts added that CoCo has quickly become a key component of Snowflake's sales strategy, driving rapid expansion of AI/smart agent workloads (mainly from early adopters of CoCo), accelerating the migration of core data/analytics workloads, and providing a new channel for customer interaction. Kidron and his team stated, "Overall, we believe these factors will drive customers to make larger commitments, expedite renewal cycles, and push product revenue growth to accelerate further (growth rate rising to 34.7%, up from 33.5%). The competition between Snowflake and Databricks remains fierce; however, it seems both companies are primarily capturing market share from traditional vendors. Overall, we maintain a positive outlook and expect product revenue to rise by 3%-4% to $1.4687 billion; on a median basis, this represents a year-over-year growth of 34.7%, compared to the market consensus of $141.9 billion, which reflects a year-over-year growth of 30.1%. Meanwhile, Snowflake's sales pipeline for the third quarter of fiscal 2027 remains healthy."