Alphabet stock price target raised to $300 from $245 at Pivotal Research

Investing.com - Pivotal Research has raised its price target on Alphabet (NASDAQ:GOOG) to $300.00 from $245.00 while maintaining a Buy rating on the stock. The tech giant, currently trading at $230.06 and sporting a market capitalization of $2.78 trillion, has shown remarkable strength with a 27% surge over the past six months. According to InvestingPro data, 30 analysts have recently revised their earnings estimates upward for the upcoming period.

The significant price target increase follows what the research firm described as a "resounding court victory" for Alphabet in the remedies phase of the U.S. antitrust lawsuit, which helped the company avoid a potential breakup and maintain the status quo with little risk to revenue. This stability is reflected in the company’s robust financial health, earning a "GREAT" overall score from InvestingPro’s comprehensive analysis framework.

Pivotal Research’s new price target represents a 27x multiple on 2026 earnings estimates compared to the current 21x multiple, reflecting an increase in the terminal EBITDA multiple in their DCF valuation methodology from 13x to 16x on 2029 EBITDA.

The firm noted that without the trial overhang, investors can now focus on Alphabet’s "inexpensive valuation" and strong growth outlook, despite expectations of slowing search revenue growth.

Pivotal Research highlighted several factors supporting their bullish stance, including search’s current dominant position, Alphabet’s early AI investments leading to Gemini "materially outperforming its AI peers," potential for operating search with fewer employees, significant growth opportunities for Google Cloud, and YouTube’s position as the world’s largest video/audio streaming platform.

In other recent news, Alphabet has been the focus of multiple analyst updates and a significant antitrust ruling. Federal Judge Amit Mehta delivered a decision in the Google antitrust case, rejecting the Department of Justice’s proposal for Alphabet to divest its Chrome browser and Android operating system. This ruling is seen as a positive outcome for the company, allowing it to continue its current business practices without drastic changes. Following this decision, Truist Securities reiterated its Buy rating with a price target of $225.00, while BMO Capital maintained its Outperform rating with the same price target. Piper Sandler also reiterated its Overweight rating, setting a price target of $220.00, viewing the court’s decision favorably. Additionally, Rosenblatt adjusted its price target for Alphabet to $224.00 from $211.00, citing reduced near-term risks but maintaining a Neutral rating. These developments highlight the ongoing analyst confidence in Alphabet’s ability to navigate its legal challenges effectively.

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