10:41 AM EDT, 06/24/2025 (MT Newswires) -- Snowflake's (SNOW) secular growth prospects have improved under the leadership of Chief Executive Sridhar Ramaswamy, who took over the role in February 2024, Morgan Stanley said in a note Tuesday.

Building on this, Morgan Stanley said the pace of product innovation at Snowflake has accelerated materially across its four major opportunities, which include core cloud data warehousing, data engineering, AI/ML platforms, among others.

Snowflake's AI positioning made Morgan Stanley analysts "confident" that Snowflake can hit reported targets of $100 million AI run rate by year-end, setting up this part of the business to contribute meaningfully in full-year 2027 and beyond.

Morgan Stanley assumed coverage of Snowflake at overweight with a price target of $262.

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