Snowflake (SNOW) delivered strong fiscal Q2 results with product revenue accelerating for a third straight quarter and beating consensus, Morgan Stanley said in a report Thursday.
The results, against a tough compare and high expectations, showed just how well AI is monetizing and driving greater consumption in the core platform, the report said.
The note also said Q3 guidance for product revenue growth of 37% to 38% implies further acceleration from 37% in Q2.
The strong performance was broad-based, with management attributing about 50% of the acceleration to AI products and the balance to the core platform, the report said.
Morgan Stanley reiterated its overweight rating and raised its price target to $470 from $300, citing strong execution and line of sight to 40% growth in H2.
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