Stifel maintains Buy on Alphabet shares, target at $200

Published 22/05/2025, 13:36
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On Wednesday, Stifel analysts maintained their Buy rating and $200.00 price target for Alphabet stock (NASDAQ:GOOGL), following the company’s Google Marketing Live (GML) event. With a current P/E ratio of 18.85x and analyst targets ranging from $160 to $240, InvestingPro analysis suggests the stock is currently undervalued. The event showcased key advertising product updates and innovations. Philipp Schindler, Alphabet’s Chief Business Officer, along with other executives from the Google Ads and YouTube teams, presented the latest developments.

The GML event comes on the heels of the Google I/O keynote, which took place the previous day and emphasized new offerings in Google’s AI product suites. In contrast, the GML event was dedicated to advertising products, providing insights into the company’s efforts to enhance ad solutions and user experience. As a prominent player in the Interactive Media & Services industry, Alphabet maintains strong financial health, earning a "GREAT" overall score from InvestingPro’s comprehensive analysis.

Stifel’s analysis of the event highlighted the absence of a Pinterest-like product announcement, which had been speculated by some. Instead, the focus was on a feature called product discovery in AI Mode for search, which represents Google’s latest step in refining search capabilities with AI integration.

The analyst’s commentary suggests that the innovations presented at the GML event reinforce the firm’s positive stance on Alphabet stock. The maintained price target of $200.00 reflects Stifel’s continued confidence in the company’s growth trajectory and strategic direction within the advertising and AI sectors.

Investors and industry watchers often look to such events for indications of a company’s future plans and potential impact on its financial performance. With revenue growth of 13.07% and an impressive $359.71 billion in revenue over the last twelve months, Alphabet’s emphasis on advertising product innovation is a critical aspect of its business model, as advertising revenue remains a significant source of income for the tech giant. For deeper insights into Alphabet’s financial metrics and growth potential, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks.

In other recent news, Alphabet Inc. has been the focus of several analyst reports following its advancements in artificial intelligence (AI). BMO Capital Markets maintained an Outperform rating with a $200 price target, citing improvements in Google’s Search and YouTube advertising efficiency due to AI. Stifel also kept its Buy rating and $200 target, highlighting new AI features and products unveiled at Google’s I/O keynote. Wells Fargo (NYSE:WFC) reiterated an Equal Weight rating with a $175 target, noting the rollout of AI Mode and the potential for deeper integration into Google’s core search. Citi analysts echoed positive sentiments with a Buy rating and a $200 target, emphasizing the growth in user engagement and the launch of AI Mode in the U.S.

Meanwhile, Apple (NASDAQ:AAPL) has garnered attention as Goldman Sachs reaffirmed its Buy rating and a $253 target, focusing on AI integration ahead of Apple’s Worldwide Developer’s Conference. The firm expects significant announcements regarding AI enhancements and new features for Apple devices. These developments underscore the strategic moves both Alphabet and Apple are making in the AI space, as they continue to innovate and expand their technological capabilities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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