UBS upgrades Snowflake to "buy" on AI-driven data investment cycle

Brokerage UBS upgrades cloud firm Snowflake SNOW.N to "buy" from "neutral", raises PT to $265 from $210

New PT represents a ~21% upside to the stock's last close

Brokerage sees upside to SNOW stock, citing a clear uptick in spending on data stacks and the company's ability to benefit from the growing demand for AI-ready data

Brokerage is confident about Snowflake's multi-year investment cycle in the data layer, driven by industry checks and results from companies like Palantir PLTR.O and Databricks

Brokerage believes that competition with Databricks is manageable and that Snowflake has executed well in broadening its data management portfolio

Despite Snowflake shares being up 35% year-to-date, the firm doesn't think it's too late to invest, as the data investment cycle has duration and the stock's valuation multiples are not stretched - brokerage

Including session's moves, SNOW stock up 36.1% YTD