Goldman Sachs expects Nvidia ’beat and raise,’ lifts price target to $240
Investing.com - Rosenblatt raised its price target on Alphabet (NASDAQ:GOOGL) stock to $279.00 from $224.00 on Thursday, while maintaining a Neutral rating on the tech giant. The new target is just above GOOGL’s current price of $274.57, with the stock trading near its 52-week high of $275.34.
The significant 25% increase in the price target follows Alphabet’s strengthened business performance in the third quarter of 2025, with Google Cloud described as a "standout" segment by the research firm. InvestingPro data shows Alphabet’s revenue growth at 13.13% over the last twelve months, supporting this positive performance narrative.
Search advertising accelerated quarter-over-quarter by approximately 2 percentage points in year-over-year growth, while YouTube showed improvement of about 1 percentage point on a constant currency basis.
Rosenblatt indicated that the strength in Cloud and YouTube appears sustainable, but expressed caution about search advertising, which drives most of Alphabet’s profit, describing it as "potentially in a last hurrah" before massive AI investments by competitors like OpenAI and Meta transform competitive dynamics. Despite these concerns, InvestingPro analysis shows Alphabet trading at a PEG ratio of 0.77, suggesting the stock is attractively valued relative to its growth prospects.
The new $279 price target is based on 16 times the estimated 2026 EBITDA, supported by a mid-teens compound annual growth rate (CAGR), according to the research firm’s analysis. Alphabet’s current EBITDA stands at $140.84 billion, with the company’s overall financial health rated as "GREAT" by InvestingPro, which offers comprehensive analysis on over 1,400 US stocks through its Pro Research Reports.
In other recent news, Alphabet has reported several positive developments that are capturing investor attention. The company achieved a milestone with quarterly revenue surpassing $100 billion for the first time, accompanied by an operating income margin of 33.9%, excluding a significant European Commission fine. This financial performance has led Canaccord Genuity to raise its price target for Alphabet to $330, maintaining a Buy rating. Alphabet’s Cloud segment continues to be a key growth driver, with a notable revenue backlog increase to $155 billion, as highlighted by HSBC, which also raised its price target to $335. Stifel echoed this sentiment, citing strong performance in the Cloud segment as a reason for increasing its price target to $333. Baird also raised its price target to $310, attributing it to the momentum in generative AI. Meanwhile, Citizens reiterated its Market Outperform rating, emphasizing the strong demand for Alphabet’s AI infrastructure. These recent developments reflect a positive outlook from multiple analyst firms on Alphabet’s financial and technological advancements.
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