Jefferies Raises Snowflake Price Target to $310
N.R. Finch
Jefferies lifted its Snowflake price target from $300 to $310 after rival Databricks closed a funding round at a $188 billion valuation — making Snowflake look cheap by comparison and giving it, in effect, a price-upgrade courtesy of its competitor.
Databricks raised money — why does Snowflake benefit?
Databricks' latest funding round values the company at $188 billion, up roughly 40% from $134 billion in December 2025.
This means → the market is willing to pay more for top data-analytics companies, and Snowflake — the most direct public-market peer — gets pulled up by the same tide.
In plain terms = your neighbor's house sold at a record price, so your home appraisal goes up too. That is Jefferies' logic.
How wide is the growth gap between the two?
Jefferies estimates Databricks' annualized revenue could top $6.9 billion in the first half of FY2027, growing at roughly 80% year-over-year.
Snowflake's annualized revenue over the same period is projected at about $5.5 billion, growing 32%.
This means → Databricks is growing more than twice as fast, yet Snowflake's price-to-sales ratio — the multiple investors pay per dollar of revenue — sits at only about 70% of Databricks'. Jefferies sees that discount as excessive.
How did the $310 target get calculated?
At a $188 billion valuation, Databricks trades at roughly 14–20× estimated FY2028 revenue, with a midpoint around 17×.
Snowflake currently trades at 13× FY2028 revenue, implying an enterprise value of about $100 billion.
Jefferies assigns Snowflake a 15× multiple — a discount to Databricks, but above the current 13× — yielding a price target of $310 and an enterprise value of roughly $115 billion.
Can Snowflake's own fundamentals hold up the story?
Snowflake shares are up roughly 24% year-to-date, while the SaaS benchmark iShares Expanded Tech-Software ETF (IGV) has dropped over 13% — an outperformance gap of nearly 37 percentage points.
Q1 earnings beat on both revenue and profit; the company raised full-year guidance, and the stock jumped about 37% in a single session.
Snowflake also announced a five-year, $6 billion computing partnership with AWS, locking in revenue visibility well into the future.
Can AI tools become the next growth engine?
Analyst Brent Thill notes that Snowflake's AI products — CoCo and CoWork — are drawing increasing attention, with early-adoption metrics trending upward.
This reflects a broader pivot from "data warehouse" to "AI-powered analytics platform" — the narrative the market needs to justify a higher multiple.
The real test comes with the next earnings report's guidance: if the growth gap with Databricks keeps widening, the valuation lift from Databricks' round will be hard to sustain.
We continue to believe the leading data analytics vendors Databricks and Snowflake are best positioned to help enterprises unlock business data value and run analytics workloads faster and more efficiently with AI.
Brent Thill
Jefferies Analyst
(research note)
Content is for reference only, not financial advice.