Stifel maintains Buy rating and $200 target on Alphabet stock

On Tuesday, Stifel analysts maintained their Buy rating and $200.00 price target for Alphabet Inc. (NASDAQ:GOOGL), following the tech giant’s Google I/O keynote address. According to InvestingPro data, the company, currently trading at $163.98, appears undervalued based on its proprietary Fair Value model. The event, which featured CEO Sundar Pichai and other high-level executives, showcased Google’s advancements and new features in artificial intelligence (AI).

The keynote highlighted several of Google’s AI models and the introduction of "AI Mode" in Search, along with other AI integrations across Google’s product range. Notably, the company unveiled new products and features, demonstrating their ongoing commitment to innovation. With a market capitalization of $2 trillion and robust revenue growth of 13% year-over-year, Alphabet continues to strengthen its position as a prominent player in the Interactive Media & Services industry.

While there was no announcement of a Pinterest-like product, Stifel noted that the Google Marketing Live presentation, scheduled for May 21, might be a more suitable occasion for such a reveal. The analysts expressed optimism about Google’s capacity to deliver innovative products to consumers, referencing Project Astra and Mariner capabilities featured in AI Mode as examples of the company’s innovative strides. For deeper insights into Alphabet’s valuation and growth metrics, including 12 additional ProTips, check out the comprehensive research report available on InvestingPro.

Stifel’s commentary underscored Google’s sustained efforts to enhance its competitive edge in the AI and large language models (LLMs) space. Trading at a P/E ratio of 18.19, which is relatively low compared to its near-term earnings growth potential, the company maintains a strong financial health score of "GREAT" according to InvestingPro metrics. The firm’s summary of the event’s announcements can be found in their full note, providing a comprehensive overview of the key takeaways from the Google I/O address.

In other recent news, Alphabet Inc. has been the focus of several analyst evaluations and updates following its recent advancements in artificial intelligence (AI). Wells Fargo (NYSE:WFC) maintained an Equal Weight rating with a $175 price target, noting Alphabet’s rollout of AI Mode and the potential for deeper integration into its core search function. Citi reaffirmed a Buy rating with a $200 target, highlighting the growth in user engagement and the significant increase in monthly active users for the Gemini App, now reaching 400 million. Citi analysts also emphasized the potential undervaluation of Alphabet’s core Search & Other business, trading at less than 10 times their projected 2026 EBIT.

JPMorgan reiterated its Overweight rating with a $195 target, praising Alphabet’s product innovation showcased at the Google I/O conference, particularly the integration of AI Mode in Google Search. KeyBanc also maintained an Overweight rating, underscoring Alphabet’s strong positioning in AI infrastructure and the anticipated benefits from its latest AI offering, Gemini 2.5. Meanwhile, JMP Securities kept a Market Perform rating, citing concerns about the U.S. search anti-trust trial and the company’s loss of query share despite the promising AI advancements.

These recent developments reflect Alphabet’s strategic focus on integrating AI across its product suite, with analysts closely watching its potential impact on the company’s core search business and overall growth prospects.

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