AI tailwinds and cloud migration demand drive price target increases for key infrastructure software stocks, Truist says.
Truist Securities raised price targets for Snowflake (SNOW) and MongoDB (MDB) after a broader rally in infrastructure software stocks, fueled by AI-related growth. The firm cited accelerating top-line growth, particularly from AI data preparation and cloud migration projects, as key drivers for Snowflake’s momentum.
Recent earnings from peers like JFrog (FROG) and Datadog (DDOG) highlighted similar trends, reinforcing confidence in the sector. Truist noted growing adoption of Snowflake’s CoCo platform but remained cautious on seat-based demand contraction and core demand durability.
The firm’s intra-quarter update suggested a potential turnaround, though questions about long-term demand persist.