Bank of America lifts Snowflake target before May 27

After a rough stretch for Snowflake shares, Bank of America raised its price target and kept a Buy rating ahead of the company’s May 27 earnings report, arguing the AI business intelligence opportunity is growing fast enough to outweigh competitive and demand

On the eve of Snowflake’s May 27 earnings report. the market is still dealing with the kind of underperformance that sticks in investors’ minds. Snowflake’s stock is down 21.92% year-to-date and has lost nearly 6% over the past year. even as the broader market has moved higher and the AI software sector has produced new winners with regularity.

Bank of America isn’t backing away from the name. In a note shared with TheStreet. BofA Securities raised its price target on Snowflake (SNOW) and kept a Buy rating ahead of the company’s May 27 earnings report. The new target is $171.27, which the bank says implies roughly 20% upside from current levels.

What makes the timing feel tense is the bank’s insistence that the debate—about whether Snowflake can win in an AI-driven business intelligence race—hinges on the next quarter. not last quarter’s stock damage. Analyst Koji Ikeda. ranked 857 out of 12. 237 Wall Street Analysts. said BofA does not expect the first-quarter results to change its view that Snowflake is gaining market share in the AI business intelligence opportunity. May 27, then, becomes the test investors are really waiting for.

BofA also adjusted the target in a specific way: it raised Snowflake’s price target to $205 from $195. The bank framed that move as a valuation decision, not a revision to near-term financial forecasts. In the note. BofA said it increased its enterprise value to a calendar year 2027 estimated revenue multiple of 10.3 times. up from 9.8 times. pointing to higher execution confidence.

That distinction is part of the message. BofA is not claiming Snowflake’s financials are already improving in the near term. Instead. it is paying a higher multiple because its confidence in Snowflake’s ability to execute over the next 18 months has increased—specifically around the AI business intelligence opportunity.

There is still risk in the picture. BofA flagged some concern around near-term Middle East demand headwinds, but it called them immaterial. Middle East revenue is estimated at approximately 1% of Snowflake’s total, according to the note. BofA argued that geographic concentration at that level is too small to move the needle on a company targeting $5.66 billion in full-year fiscal 2027 product revenue.

Outside BofA, the sentiment is split. JMP Securities and Citizens carry $325 price targets with Market Outperform ratings. while UBS and Evercore ISI have pulled their targets back to $210 and $200. respectively. Their caution centers on competition concerns and core cloud data warehousing deceleration.

The shares themselves have turned the stock story into something sharper: for investors looking for confirmation, May 27 could either validate the “entry point” thesis—or deepen the doubt.

Snowflake reported fiscal fourth-quarter 2026 results on February 25, setting the baseline for what May 27 has to answer. In that quarter. Snowflake posted Q4 revenue of $1.28 billion. up 30% year over year. and product revenue of $1.23 billion. also up 30% year over year. The company reported a net revenue retention rate of 125%. and it counted 733 customers with trailing 12-month product revenue above $1 million. up 27% year over year. Net new customer additions totaled 740, up 40% year over year. Remaining performance obligations were $9.77 billion, up 42% year over year.

For Q1 fiscal 2027, Snowflake guided for product revenue of $1.262 billion to $1.267 billion—approximately 27% year-over-year growth—with an adjusted operating margin of 9%, according to guidance. For full-year fiscal 2027, product revenue guidance targets approximately $5.66 billion.

The Q1 guide implies a modest deceleration from Q4’s 30% growth rate. That is the central question BofA is betting on May 27 to resolve: does that deceleration hold, or does it reverse?

BofA’s confidence is tied to Snowflake’s AI adoption numbers. which it treats as the foundation of the bull case heading into the earnings print. As of fiscal year-end 2026, over 9,100 accounts were using Snowflake AI features, including Toyota Motor Europe and United Rentals. Snowflake Intelligence—the company’s agentic AI platform—grew from a nascent offering to nearly 2,500 accounts in just three months.

Snowflake also pointed to expansion in its product lineup. The company said it launched over 430 new product capabilities in fiscal 2026 alone. That included Cortex Code, an AI coding agent, and it acquired TensorStax to strengthen AI-driven data engineering.

Partnership momentum is another piece of the case. The AVEVA collaboration announced on May 19 adds what Snowflake describes as a direct zero-copy integration between AVEVA’s industrial intelligence platform and Snowflake’s AI Data Cloud. aiming to remove complex data pipelines for industrial customers. Snowflake also said partnerships with Anthropic. Google Cloud. and OpenAI provide native access to leading foundation models inside the Snowflake platform.

In its February earnings release, CEO Sridhar Ramaswamy said: “Snowflake sits at the center of the enterprise AI revolution,” adding, “We’re activating world-class agentic capabilities on top of that platform.”

For a stock that has been left behind in 2026. the May 27 earnings report is the clearest opportunity to either reset that narrative or deepen the doubt. BofA has picked its side. It raised its price target to $205 from $195 while maintaining a Buy rating ahead of May 27. arguing the AI tailwind in Snowflake’s AI business intelligence push is strong enough to overpower the competitive and demand headwinds that other analysts are citing.

This story was originally published by TheStreet on May 20, 2026, where it first appeared in the Investing section.

Snowflake Bank of America BofA Securities SNOW May 27 earnings AI business intelligence Snowflake Intelligence AVEVA Middle East demand price target enterprise value multiple