June 24 – Snowflake (SNOW, Financial) jumped about 4% on Tuesday morning after Morgan Stanley initiated coverage at “Overweight,” citing improved execution and innovation under CEO Sridhar Ramaswamy.
Morgan Stanley highlighted stronger performance across sales, go-to-market strategy, and engineering since Ramaswamy took charge. That boost helped stabilize product revenue growth in the high 20% range.
Analysts at the firm expect AI-driven demand and expansion into data engineering and AI platforms could deliver a compound annual revenue growth rate exceeding 20% through 2030.
The firm also noted a “material acceleration” in innovation across Snowflake's core offerings, cloud data warehousing, data engineering, AI/ML platforms, and collaboration tools.
Snowflake shares have outpaced many large-cap software peers, climbing about 37% year-on-year, compared to roughly 9% for the broader sector. Yet Morgan Stanley emphasized there remains “a healthy debate” over the company's positioning in AI.
Analysts believe several upcoming product launches and potential estimate upgrades could act as catalysts in the next quarter.
Snowflake's upgrade reflects growing confidence in its strategic shift under new leadership, though AI execution will likely be the key to validating those expectations.
