Amazon jumps 5% after AWS and OpenAI announce $38B partnership
Investing.com - KeyBanc raised its price target on Alphabet (NASDAQ:GOOGL) stock to $330.00 from $300.00 on Thursday, while maintaining an Overweight rating on the shares.
The firm cited Alphabet’s "full stack advantage in AI" as a key factor in its decision, noting that product innovation is driving momentum in both the company’s Search and Cloud segments.
KeyBanc acknowledged potential increased capital expenditure in 2026, projecting approximately $124 billion in spending, but remained confident about Alphabet’s financial outlook.
The research firm expects low double-digit percentage growth in Search and more than 30% growth in Cloud services, which it believes can "insulate margins and drive healthy EPS growth."
The new $330 price target represents a 24.5x price-to-earnings multiple based on KeyBanc’s 2027 estimates for the technology giant.
In other recent news, Alphabet has reported impressive third-quarter results, surpassing $100 billion in revenue for the first time in its history. The company’s operating income margin reached 33.9%, excluding a $3.5 billion fine from the European Commission, marking a significant year-over-year expansion. Analysts have responded positively, with several firms raising their price targets for Alphabet. Stifel increased its target to $333, highlighting the strong performance of Google Cloud, which saw a 184 basis point acceleration in revenue growth. Similarly, HSBC raised its target to $335, noting a 43.3% increase in Google Cloud’s revenue backlog, now valued at $155 billion. Canaccord Genuity also adjusted its target to $330, citing the robust quarterly results. Rosenblatt raised its target to $279, maintaining a Neutral rating, while Citizens reiterated a Market Outperform rating, emphasizing the high utilization of Alphabet’s AI infrastructure. These developments underscore the significant role of Google Cloud in Alphabet’s recent growth.
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