Snowflake (SNOW) shares ended in the green on Tuesday after Bank of America Securities said they could rip higher over the next 12 months.
In a research note this morning, analyst Koji Ikeda maintained a “Buy” rating on SNOW, and raised his price target to $205, signaling potential upside of another 20% from here.
BofA’s bullish call comes at a time when Snowflake stock is already in a strong uptrend, having rallied more than 40% since early April.
BofA’s Bull Case for Snowflake Stock
Ikeda is convinced that Snowflake will report strong financials for its Q1 next week. Consensus is for the company to contract its per-share loss by a whopping 35% to $0.59
According to the BofA analyst, “robust demand that SNOW was seeing heading into 2026 should continue unabated.”
Crucially, he argued that Snowflake is consistently expanding its market share within the rapidly growing AI business intelligence sector.
Ikeda downplayed concerns of near-term regional softness, particularly in the Middle East, noting the company generates under 1% of its revenue from that geography.
Note that SNOW shares have a history of closing both May and June with an average 5% gain — a seasonal trend that makes them much more attractive to own in the near term.
CoCo Could Drive SNOW Shares Higher
Ikeda expects Snowflake shares to push higher as the company’s core drivers of growth — its massive data engine, product monetization, and enterprise AI workloads — continue to dictate the narrative.
Bank of America is particularly bullish on Cortex Code (CoCo), the firm’s AI-native tool designed to help customers generate, test, and deploy production‑ready code at scale.
The investment firm expects CoCo to prove a “stronger-than-expected driver of growth” in fiscal 2027, given SNOW is already seeing adoption across half of its customer base.
Options traders seem to share BofA’s optimism on Snowflake Inc as well, with the upper price on contracts expiring Aug. 21, indicating potential upside to $209 over the next three months.
How Wall Street Recommends Playing Snowflake
Interestingly, BofA is actually among the more conservative Wall Street firms on SNOW stock.
The consensus rating on Snowflake sits at “Strong Buy,” with the mean price target of nearly $229 signaling potential for another 33% upside from here.
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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