KeyBanc raises Alphabet stock price target to $230 on AI momentum

Investing.com - KeyBanc Capital Markets raised its price target on Alphabet (NASDAQ:GOOGL) stock to $230.00 from $215.00 on Thursday, while maintaining an Overweight rating on the shares. The tech giant, currently trading at $190.23 with a market capitalization of $2.32 trillion, has shown robust financial health according to InvestingPro data.

The price target increase follows Alphabet’s second-quarter earnings report, which KeyBanc said reinforced its view that artificial intelligence is driving momentum across the company’s business units. This momentum is reflected in the company’s 13.07% revenue growth and strong analyst support, with 16 analysts recently revising their earnings estimates upward.

KeyBanc noted that Alphabet’s management signaled AI has been additive to search queries, a positive indicator for the company’s core business performance.

While the firm acknowledged Alphabet indicated higher capital expenditures ahead, KeyBanc believes this represents reinvestment from a position of strength that should support greater than 10% revenue and earnings per share growth over the medium term.

KeyBanc’s new $230 price target represents 18.3 times the firm’s 2027 price-to-earnings estimate for Alphabet, with the firm stating that evidence is mounting that Alphabet is benefiting from AI.

In other recent news, Alphabet has seen a series of positive developments following its quarterly earnings reports. The company reported strong first-quarter results, with particularly healthy advertising trends across Search and YouTube, and outperformance in its Cloud segment. This led Stifel to raise its price target for Alphabet to $222, maintaining a Buy rating. Meanwhile, Alphabet’s second-quarter performance also impressed analysts, with Evercore ISI highlighting "very strong Q2 EPS results" that exceeded expectations, prompting a price target increase to $240. Similarly, RBC Capital raised its price target to $220, citing AI-driven growth and broad revenue beats. BMO Capital also adjusted its price target to $225, driven by Alphabet’s strong second-quarter results and AI momentum. Jefferies increased its price target to $230, noting progress in Alphabet’s Cloud and AI investments, which have started to show returns. These developments reflect a growing confidence among analysts in Alphabet’s ongoing strategic initiatives and financial performance.

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