KeyBanc cuts Snowflake price target to $200 citing AI competition and budget pressures.

KeyBanc lowered its price target for Snowflake from $235 to $200 while maintaining an Overweight rating, reflecting concerns over softening enterprise software budgets and competition from AI-native alternatives. Despite strong recent revenue growth and customer additions, 20% of partners report reduced software spending in favor of AI tools, signaling potential near-term challenges. Snowflake's long-term prospects remain positive due to its data governance strengths, but investors should watch upcoming Q1 FY2027 results closely amid a 36% year-to-date stock decline. The price cut aligns with broader tech sector repricing amid cloud and AI shifts.