Canaccord Genuity raises Alphabet stock price target on lenient antitrust ruling

Published 04/09/2025, 12:22
Canaccord Genuity raises Alphabet stock price target on lenient antitrust ruling

Investing.com - Canaccord Genuity raised its price target on Alphabet (NASDAQ:GOOGL) stock to $270.00 from $230.00 on Thursday, while maintaining a Buy rating following a favorable antitrust ruling. The stock, currently trading at $230.66 with a market capitalization of $2.79 trillion, has shown remarkable strength with a 48% gain over the past year, according to InvestingPro data.

The price target increase comes after Tuesday’s district court remedy ruling in the Google-DOJ Search antitrust case, where Judge Amit Mehta outlined remedies that were "relatively lenient vs. expectations," according to the research firm.

The court did not require Google to divest its Chrome browser or Android operating system, which preserves key parts of the company’s business model. While Google is barred from entering exclusive search default agreements, it can still make payments for search preloading or placement.

The ruling requires Google to share certain data assets with competitors, but importantly does not mandate sharing of the company’s "more valuable and proprietary query and ads data," Canaccord Genuity noted.

The research firm believes regulatory uncertainty has weighed on Alphabet’s stock in recent years, preventing it from fully participating in the "multiple expansion cycle across the large-cap tech group," and suggests this ruling "removes a considerable overhang and improves visibility" for the company. For deeper insights into Alphabet’s valuation and growth prospects, access the comprehensive Pro Research Report available exclusively on InvestingPro, along with 16 additional key investment tips for this stock.

In other recent news, Alphabet Inc. has been at the center of several significant developments. The French data protection authority fined Google, a subsidiary of Alphabet, €325 million for violations of French cookie regulations, as part of a broader effort to control how large tech companies track users online. In the United States, a U.S. District Court judge issued a remedies decision in the Department of Justice’s antitrust case against Google, outlining measures related to its online search business. This follows an earlier liability finding against the company.

Despite these legal challenges, Alphabet received a boost from Pivotal Research, which raised its stock price target from $245 to $300, maintaining a Buy rating. This adjustment was attributed to a "resounding court victory" in the remedies phase of the antitrust lawsuit, which helped Alphabet avoid a potential breakup. Meanwhile, Truist Securities also maintained its Buy rating and $225 price target on Alphabet, noting the rejection of drastic remedies that would have required Google to divest its Chrome browser and Android operating system.

In another development, Revolut announced a multi-year partnership with Google Cloud to enhance its global financial technology infrastructure. This agreement will allow Revolut to leverage Google Cloud’s secure and scalable infrastructure to power its worldwide systems. These recent developments highlight a period of significant activity for Alphabet and its subsidiaries.

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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