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Investing.com - Rosenblatt raised its price target on Alphabet (NASDAQ:GOOGL) stock to $224.00 from $211.00 on Wednesday, while maintaining a Neutral rating on the shares. The tech giant, currently trading near its 52-week high of $214.65, has demonstrated strong financial health according to InvestingPro data, with a market capitalization of $2.56 trillion.
The price target increase follows Judge Amit Mehta’s search remedy ruling, which Rosenblatt believes reduces near-term risks for Google’s parent company while still presenting long-term competitive challenges.
The firm noted that the ruling removes immediate concerns about a potential breakup of the company or disruption to Google’s distribution deal with Apple, outcomes that had worried some investors despite not being widely expected.
Rosenblatt adjusted its valuation model to reflect this reduced risk profile, raising its EV/EBITDA multiple assumption to 13x from 11x previously, supported by what it describes as a "mid-teens EBITDA growth rate."
Despite the higher price target, the firm maintained its Neutral stance on Alphabet shares, citing persistent "long-term concerns about competitive risks to search" that it believes will limit further multiple expansion.
In other recent news, Alphabet has seen a series of positive developments following the resolution of its antitrust case with the Department of Justice. Needham has increased its price target for Alphabet to $260, citing favorable remedies in the DOJ case. Similarly, Wedbush raised its price target to $245, highlighting reduced regulatory risks and suggesting that Alphabet’s current valuation discount compared to peers is unjustified. Barclays also increased its price target to $250, attributing this to the diminishing legal risks and drawing parallels to a previous period of valuation expansion.
Goldman Sachs has reiterated its Buy rating and maintained a $234 price target, analyzing the court’s remedies and expressing a positive outlook on Alphabet’s shares in the medium to long term. These recent developments indicate a shift in investor sentiment, as regulatory concerns that once loomed over Alphabet appear to be easing. The favorable court decisions have prompted multiple analysts to revise their price targets upward, reflecting increased confidence in Alphabet’s market position.
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