Morgan Stanley cuts Alphabet stock price target to $210

On Wednesday, Morgan Stanley (NYSE:MS) analyst Brian Nowak adjusted the price target for Alphabet Inc. (NASDAQ:GOOGL), reducing it to $210 from the previous $215. Despite the reduction, the firm maintained its Overweight rating on the tech giant’s shares. Currently trading at $206.38, Alphabet’s stock sits near its 52-week high of $207.05, having delivered an impressive 44% return over the past year. According to InvestingPro analysis, the stock appears fairly valued based on its proprietary Fair Value model.

Nowak compared Alphabet’s current situation to that of META (NASDAQ:META), noting strong demand for Google Cloud Platform (GCP) and mentioning that Alphabet is compute capacity constrained. He highlighted the company’s significant capital expenditure plans, with $75 billion earmarked for investment in core products, artificial intelligence development, and GCP growth initiatives. These investments aim to serve billions of users and drive adoption over multiple years. With a robust financial health score of "GREAT" on InvestingPro, and maintaining more cash than debt on its balance sheet, Alphabet appears well-positioned to execute these ambitious plans.

Alphabet’s extensive product pipeline, which includes technologies like Overviews, Circle to Search, Lens, and various AI-driven projects, was also emphasized by Nowak. However, he pointed out that the success of these products in generating long-term revenue and cash flow growth remains to be demonstrated.

Following Alphabet’s recent earnings report, Nowak noted a downward adjustment in his forecast for 2026 earnings per share (EPS), which fell by approximately 4%. This adjustment was attributed to a 1% decrease in projected revenue and an approximate 11% increase in depreciation and amortization expenses. Despite these adjustments, Alphabet maintains strong fundamentals with a 14.38% revenue growth and healthy 58.13% gross margins. For deeper insights into Alphabet’s financial health and growth prospects, InvestingPro subscribers can access comprehensive analysis and 13 additional ProTips about the company.

The analyst expressed a belief that Alphabet’s stock might experience range-bound trading while the market awaits the release of new products. He also presented a bull case scenario for the stock, with a potential price target of $275, which would represent a 45% upside if Alphabet can expedite product delivery and validate the long-term value of its offerings. Currently trading at a P/E ratio of 27.31 and commanding a market capitalization of $2.53 trillion, Alphabet remains a prominent player in the Interactive Media & Services industry.

In other recent news, Alphabet Inc. has been the subject of several analyst upgrades. BofA Securities reiterated a Buy rating for Alphabet, maintaining a price target of $225, citing strong performance in its Search business and potential benefits from AI integration. Goldman Sachs also expressed confidence in Alphabet’s strategic positioning, particularly in the context of AI, raising their price target to $220 from $215.

In contrast, Intel Corporation (NASDAQ:INTC) may face an antitrust investigation by Chinese regulators, according to a report by the Financial Times. The potential probe is part of a broader revival of antitrust investigations by China’s State Administration for Market Regulation, which includes inquiries into other major US tech firms.

Meanwhile, Bernstein analysts at SocGen Group increased their price target for Alphabet from $185 to $210, maintaining a Market Perform rating. They foresee steady growth in Google Search and potential upside from other segments, such as Cloud services. Lastly, Oppenheimer has also raised its price target for Alphabet to $225 from $215, maintaining an Outperform rating, reflecting a positive outlook on the company’s advertising trends and its positioning within the AI space. These are recent developments in the tech industry.

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