Snowflake Stock Gains “Buy” Rating, As Goldman Sachs Release Software Sector Ratings

Snowflake Inc. (NYSE: SNOW) is drawing increased market attention following Goldman Sachs' initiation of coverage with a “Buy” rating and a price target of $286. This endorsement arrives amidst a broader analysis of the software sector, where Goldman Sachs anticipates significant growth driven by the adoption of artificial intelligence (AI) over the next decade.

The firm projects that Snowflake will particularly benefit from data platform modernization trends expected to gain traction by 2026.

Goldman Sachs' Software Sector Ratings

Goldman Sachs' optimistic outlook on Snowflake is part of a wider assessment of the software landscape. Alongside Snowflake, the firm initiated coverage on several other software companies, issuing a range of ratings. These ratings reflect Goldman Sachs' perspective on each company's ability to capitalize on evolving trends in AI and data platform technologies.

The “Buy” ratings stood out among the sector, with the other names covered here below:

• Datadog (DDOG) – Sell rating and $113 price target
• Adobe (ADBE) – Sell rating and $290 price target
• Workday (WDAY) – Neutral rating and $238 price target
• Intuit (INTU) – Neutral rating and $720 price target
• Figma (FIG) – Neutral rating and $40 price target
• CoreWeave (CRWV) – Neutral rating and $86 price target
• Navan (NAVN) – Buy rating and $30 price target
• ServiceNow (NOW) – Buy rating and $205 price target
• Salesforce (CRM) – Buy rating and $330 price target
• Microsoft (MSFT) – Buy rating and $655 price target

The consensus among analysts suggests a strong belief in Snowflake's growth prospects, particularly as the company continues to leverage opportunities in AI and data platform modernization. The company's ability to adapt to these technological shifts is viewed as a key factor in its potential for future growth and market leadership.

The recent “Buy” rating from Goldman Sachs, coupled with positive assessments from other firms, may boost market sentiment and confidence in Snowflake's long-term strategy. It is far more likely that markets will want to see signs of growth before making a more marked shift, with the stock 18.5% lower over the past 12 months.