KeyBanc cuts Alphabet stock price target to $220

On Wednesday, KeyBanc Capital Markets adjusted its price target for Alphabet (NASDAQ:GOOGL) stock, the parent company of Google, to $220 from the previous target of $225. The firm maintained its Overweight rating on the shares despite the reduction. According to InvestingPro data, Alphabet’s stock is currently trading near its 52-week high of $207.05, with an impressive 44% return over the past year. This adjustment came in the wake of Alphabet’s recent earnings report, which, according to KeyBanc analyst Justin Patterson, did not provoke the positive reaction that might have been expected given that Search and YouTube performance exceeded forecasts.

The dip in stock price, approximately 8% in after-hours trading, was attributed by Patterson to investor concerns regarding tougher year-over-year comparisons in Search revenue, currency exchange headwinds, and anticipated increases in capital expenditures and depreciation. These factors were not deemed overly surprising by the analyst. Despite these concerns, InvestingPro analysis shows Alphabet maintains robust financial health with a 14.38% revenue growth and strong market position, holding more cash than debt on its balance sheet.

Patterson also noted potential market share implications for Alphabet’s Cloud division due to the need for additional capacity to handle AI workloads. However, he mentioned that the firm would observe how this situation evolves before drawing any conclusions.

Despite the decrease in the price target, KeyBanc’s estimates for Alphabet’s revenue and earnings per share (EPS) have not changed significantly. The revisions were less than 0.2% on revenue and around 1% on EPS. The new price target of $220 is based on a projected 21.8 times the estimated earnings for the year 2026.

Alphabet’s financial performance, particularly in its Search and YouTube segments, remains a focal point for investors as they gauge the company’s ongoing growth prospects and navigate the challenges presented by the current economic environment. For deeper insights into Alphabet’s valuation and growth metrics, InvestingPro subscribers can access comprehensive analysis, including 13 additional ProTips and detailed financial health scores that help inform investment decisions.

In other recent news, Alphabet Inc. has been the subject of various analyst adjustments. Morgan Stanley (NYSE:MS) cut its price target for Alphabet to $210, citing a 4% downward adjustment in its 2026 earnings per share forecast due to a decrease in projected revenue and increased depreciation expenses. In contrast, BofA Securities maintained a Buy rating for Alphabet, with a $225 price target, highlighting potential growth in the company’s Search business through AI integration.

Goldman Sachs, on the other hand, increased Alphabet’s price target to $220, emphasizing the strategic positioning of the company in the context of AI. Bernstein analysts at SocGen Group also raised their price target for Alphabet to $210, projecting steady growth in Google Search and potential upside from other segments.

Meanwhile, Intel Corporation (NASDAQ:INTC) is potentially facing an antitrust investigation by Chinese regulators, adding complexity to the company’s global business environment. These are among the recent developments affecting these tech giants.

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