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Investing.com - Jefferies raised its price target on Alphabet (NASDAQ:GOOGL) stock to $230.00 from $210.00 on Thursday, while maintaining a Buy rating on the technology giant. According to InvestingPro data, analysts maintain a strong Buy consensus with targets ranging from $160 to $250, while the stock currently trades at $190.23.
The research firm cited Alphabet's Cloud and AI investments as "starting to pay off," noting that after early challenges in 2023, the company's AI efforts have gained momentum and delivered the benchmark-leading Gemini 2.5 Pro models. These investments are supporting Alphabet's robust 13% revenue growth, with InvestingPro analysis showing the company maintains excellent financial health with a "GREAT" overall score.
Jefferies pointed to improving key performance indicators, including Cloud revenue acceleration to 32% year-over-year from 28% previously, and a doubling of tokens processed to 980 trillion since April.
Search advertising revenues have also accelerated to 12% from 10%, according to the research note, with this increased confidence supporting Alphabet's capital expenditure raise to $85 billion for 2025.
The firm noted that Alphabet stock currently trades at approximately 11.8x EV/EBITDA compared to its 10-year average of 12x.
In other recent news, Alphabet's second-quarter earnings have exceeded expectations, leading to positive reactions from several analyst firms. Evercore ISI raised its price target for Alphabet to $240, citing strong earnings per share results and revenue that surpassed forecasts. Similarly, RBC Capital increased its price target to $220, acknowledging Alphabet's impressive performance in all revenue segments and margin improvements, excluding a one-time legal settlement. KeyBanc Capital Markets maintained its Overweight rating with a $215 price target, noting potential upside from Alphabet's advancements in artificial intelligence.
In technological developments, Google has launched Aeneas, a new AI model aimed at transforming the study of ancient Latin inscriptions, offering enhanced capabilities over previous models. Meanwhile, Meta Platforms (NASDAQ:META) has recruited three AI researchers from Google DeepMind, who were part of a team that achieved significant success at the International Math Olympiad. These recent developments highlight Alphabet's ongoing influence and innovation in the technology sector.
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