Snowflake (SNOW) remains well positioned for continued growth as rising AI workloads drive demand for its data cloud platform, RBC Capital said Tuesday in a report.

The company on Tuesday reaffirmed Q1 and fiscal 2027 guidance and named Jonathan Beaulier as chief revenue officer, replacing Mike Gannon, in a "surprising change," RBC said. Still, Beaulier's decade of experience in the company's sales organization "positions him well for his new role," the report said.

In Q1, Snowflake expects product revenue of $1.26 billion at the midpoint of its projected range, with an operating margin near 9%, the report said. The company also reaffirmed its fiscal 2027 product revenue outlook of about $5.66 billion, implying almost 27% growth, alongside 75% gross margin, 12.5% operating margin, and 23% adjusted free cash flow margin, RBC said.

Snowflake stands to benefit from rising AI and machine learning demand, supported by its consumption-based model, expanding product portfolio, and improving operating leverage as revenue grows faster than headcount, RBC said.

RBC maintained its outperform rating on Snowflake stock with a price target of $245.

Price: 154.91, Change: +4.09, Percent Change: +2.71