Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - KeyBanc Capital Markets has raised its price target on Alphabet (NASDAQ:GOOGL) stock to $215.00 from $195.00 while maintaining an Overweight rating. The tech giant, currently valued at $2.22 trillion, trades at a P/E ratio of 20.35x and shows strong financial health according to InvestingPro metrics.
The investment firm expects Alphabet to report "solid" second-quarter results with revenue of $94.6 billion, above Wall Street consensus, driven by strength in Search, YouTube, and Cloud services. With Alphabet’s earnings scheduled for July 23 and revenue growing at 13.07% year-over-year, InvestingPro analysis suggests the stock is currently undervalued.
KeyBanc anticipates positive commentary from Alphabet management on AI Mode, Waymo, and expense efficiencies, along with reinforcement of the value of the company’s platform approach to artificial intelligence.
The firm has increased its earnings per share estimates for Alphabet to $9.88 for 2025 and $10.56 for 2026, representing increases of 1% and 2% respectively, and introduced a 2027 EPS estimate of $12.25, all above Street consensus.
The new price target of $215 reflects a 17.5x price-to-earnings multiple on KeyBanc’s 2027 earnings estimate, based on near-term momentum in Alphabet’s business.
In other recent news, Alphabet has received attention from analysts with Cantor Fitzgerald and Needham both raising their stock price targets, citing strong performance in AI and digital advertising. Cantor Fitzgerald increased its target to $196, maintaining a Neutral rating, and anticipates Alphabet will exceed Wall Street’s revenue and earnings projections in the upcoming quarter. Meanwhile, Needham raised its target to $210, maintaining a Buy rating, and highlighted Alphabet’s commanding position in global digital advertising and the potential of generative AI as a significant growth driver.
In technological advancements, Google has introduced new AI capabilities to its Search platform with the launch of Gemini 2.5 Pro, available to AI Pro and AI Ultra subscribers. This update includes features like Deep Search for enhanced reasoning and research and an AI-driven calling feature for local businesses. Additionally, Rivian (NASDAQ:RIVN) has partnered with Google to integrate Google Maps into its navigation system, offering enhanced routing capabilities and location information for Rivian vehicle owners.
In the semiconductor industry, Advanced Micro Devices (NASDAQ:AMD) announced it can resume shipping its MI308X AI GPU to China after a review by the U.S. Department of Commerce. This development is expected to impact AMD’s projected sales positively, despite the MI308X GPU having lower margins than the company’s average. The news coincides with significant AI and data center investments in the U.S., which analysts at Citi view as beneficial for companies like Broadcom (NASDAQ:AVGO), AMD, and Micron Technology (NASDAQ:MU).
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