BofA Securities reiterates Buy rating on Alphabet stock amid search remedy clarity

Published 04/09/2025, 19:42
BofA Securities reiterates Buy rating on Alphabet stock amid search remedy clarity

Investing.com - BofA Securities has maintained its Buy rating and $252.00 price target on Alphabet (NASDAQ:GOOGL) stock, citing reduced uncertainty following the recent Search remedy ruling. The tech giant, currently trading near its 52-week high of $231.31, has demonstrated strong momentum with a 35.27% gain over the past six months. According to InvestingPro data, Alphabet maintains a "GREAT" financial health score, supported by robust fundamentals and steady growth.

The research firm believes the court decision, which allows non-exclusive traffic acquisition cost (TAC) deals, will enable Google to become more active in signing new distribution agreements for its Gemini AI product.

BofA Securities expects Google to increase promotion of Gemini and the Gemini app across its product ecosystem, potentially unlocking new monetization opportunities while slowing competitors’ growth.

The firm suggests that increasing Gemini usage could help address investor concerns about intensifying AI competition in the market.

BofA Securities maintains that these developments support a higher multiple for Alphabet stock, reinforcing its Buy rating and $252 price target.

In other recent news, Alphabet has been at the center of significant developments. The company received a favorable antitrust ruling from a U.S. District Court, leading to an increase in its stock price target by Canaccord Genuity to $270.00, while maintaining a Buy rating. Similarly, Pivotal Research also raised its price target for Alphabet to $300.00, citing the court’s decision as a "resounding victory" that mitigates risks to the company’s revenue. In a separate matter, Alphabet was fined €325 million by France’s data protection authority for violations of cookie regulations, as part of a broader effort to regulate tech companies’ online tracking practices.

Additionally, Revolut has entered into a multi-year, multi-million dollar partnership with Google Cloud, which will allow Revolut to leverage Google’s secure and scalable infrastructure for its global operations. This partnership is expected to enhance Revolut’s financial technology infrastructure worldwide. These recent developments highlight Alphabet’s ongoing legal challenges and strategic partnerships, which are crucial for investors to consider.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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