Alphabet stock price target raised to $345 by Oppenheimer on AI momentum

Investing.com - Oppenheimer has raised its price target on Alphabet (NASDAQ:GOOG) to $345 from $300 while maintaining an Outperform rating, citing strengthening artificial intelligence tailwinds across the company’s core businesses. Currently trading at $275.17, Alphabet sports a P/E ratio of 26.14 and a PEG ratio of 0.77, suggesting the stock is trading at a reasonable valuation relative to its growth potential.

The research firm noted that Alphabet’s Search revenue accelerated to 15% year-over-year growth in the third quarter, compared to 12% in the second quarter, exceeding both Oppenheimer and Street expectations. This acceleration was attributed to AI creating an "expansionary moment for Search," with Gemini app queries tripling compared to the previous quarter.

Google Cloud Platform (GCP) showed continued momentum with 34% year-over-year growth, up from 32% in the second quarter, while its backlog increased 46% quarter-over-quarter compared to 18% in the prior period. The company’s AI Mode now reaches 75 million daily active users in the U.S., with AI Overviews driving "meaningful query growth." With a market capitalization of $3.32 trillion and a year-to-date return of 45%, Alphabet continues to be a prominent player in the Interactive Media & Services industry.

Third-quarter operating income exceeded expectations, growing 22% year-over-year versus 14% in the second quarter. Alphabet also increased its fiscal year 2025 capital expenditure guidance by 8%.

Oppenheimer’s new price target is based on a multiple of 24 times estimated 2027 earnings per share, plus a $200 billion valuation for Waymo, Alphabet’s autonomous driving unit.

In other recent news, Alphabet reported its financial results for the third quarter of 2025, surpassing expectations with earnings per share of $2.87, significantly higher than the forecasted $2.29. The company achieved a revenue milestone of $102.3 billion, exceeding the anticipated $99.79 billion. Wolfe Research responded to Alphabet’s strong performance by raising its price target to $350, maintaining an Outperform rating, and highlighting the company’s AI-driven growth. BMO Capital also adjusted its price target for Alphabet to $340, citing impressive quarterly performance with revenue beats across key segments like Search, YouTube, and Google Cloud. Alphabet’s third-quarter Search revenue showed a year-over-year acceleration to 14.5%, up from 11.7% in the second quarter. Paid clicks growth also improved to 7% year-over-year, compared to 4% in the previous quarter. These developments reflect Alphabet’s robust financial health and strategic advancements in its core business areas.

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