KeyBanc raises Alphabet stock price target to $265 on favorable DOJ ruling

Published 03/09/2025, 07:38
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect

Investing.com - KeyBanc Capital Markets has raised its price target on Alphabet (NASDAQ:GOOGL) stock to $265.00 from $230.00 while maintaining an Overweight rating. The company, currently trading at $211.35, has shown remarkable strength with a 35% return over the past year. According to InvestingPro data, 30 analysts have recently revised their earnings estimates upward for the upcoming period.

The firm cited the Department of Justice ruling as "better than feared" and described it as a clearing event that could allow Alphabet shares to trade at least in line with the S&P 500.

KeyBanc believes investors will refocus on Alphabet’s underlying asset value and question whether the current discount on Google Services is justified, particularly given improved competitive prospects in artificial intelligence and Google Cloud’s rapid growth.

The investment bank’s analysis suggests Alphabet’s assets are trading at approximately 15 times 2027 estimated price-to-earnings ratio, based on after-hours prices, indicating potential for further share price appreciation.

The new $265 price target represents 21 times 2027 estimated price-to-earnings ratio, reflecting KeyBanc’s continued confidence in Alphabet’s growth trajectory.

In other recent news, Google announced a substantial investment of $9 billion in Virginia to enhance its cloud and artificial intelligence infrastructure. This expansion includes a new data center in Chesterfield County and partnerships to tackle energy capacity needs. In addition, DA Davidson raised its price target for Alphabet to $190, citing the growing competitiveness of Google’s Tensor Processing Units in the AI accelerator market. The firm maintained a Neutral rating, noting that Google’s TPUs are becoming a strong alternative to NVIDIA’s offerings.

Meanwhile, ByteDance, the parent company of TikTok, is setting a valuation above $330 billion for its new employee share buyback program. The company plans to offer $200.41 per share, marking a 5.5% increase from the previous offer. On the regulatory front, European leaders, including German Chancellor Friedrich Merz and French President Emmanuel Macron, emphasized their commitment to EU digital regulations. This comes in response to U.S. President Donald Trump’s threats of additional tariffs on countries with digital taxes or regulations perceived as discriminatory against American technology.

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