Snowflake's (SNOW) guidance for fiscal 2027 product revenue growth of 27% was "well above" buyside expectations of 24%, and assuming a 3% beat from the high end of the guidance, implies growth of 30% for the year, UBS said in a Wednesday research note.

UBS raised its fiscal 2027 growth estimate to 29% from 26% earlier, and said its estimate for fiscal Q1 remains unchanged at 30% with Snowflake guiding the quarterly product revenue growth of 27%.

UBS further noted that Snowflake has communicated a stable core data warehouse growth and a greater pull-through from artificial intelligence in fiscal 2027.

Snowflake's shares trade at 10 times calendar year 2026 revenue and 42 times free cash flow multiples, which seems "reasonable" given the company's high-20% to 30% growth profile and the health of the data software end market, UBS said.

The firm adjusted its price target on the company to $235 from $265 and maintained its buy rating.

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