Needham analyst Mike Cikos reiterated a Buy rating on the shares of Snowflake Inc. SNOW, raising the price target to $216 from $180.

The analyst believes there is potential for the company to increase the size of its total addressable market from $248 billion in CY26 - based on platform positioning and the unlocking of new use cases from Generative AI.

The analyst also remains confident in the company's FY29 Target Model of $10 billion in Product Revenue with an improved margin profile - consistent with CFO Mike Scarpelli's recent comments.

Also Read: Snowflake Is Not For Faint-Hearted, Long-Term Opportunity To Good To Overlook: Analyst

Snowflake is significantly expanding the number of use cases to go well beyond a "Data Warehouse" in pursuit of its vision of becoming a "Data Cloud," the analyst notes.

Furthermore, the product's user-friendliness drives broader market adoption with a low entry point for new customers, Cikos adds. 

Meanwhile, Data-Sharing generates substantial customer value and creates customer stickiness, improving retention over the long term.

Price Action: SNOW shares are trading lower by 2.11% to $175.30 on the last check Wednesday.