Street Calls of the Week
Investing.com - Stifel has raised its price target on Alphabet (NASDAQ:GOOGL) stock to $292.00 from $222.00 while maintaining a Buy rating. The tech giant, currently valued at over $3 trillion and trading near its 52-week high, has demonstrated remarkable momentum with a 59% surge over the past six months. According to InvestingPro data, analysts maintain a strong bullish consensus with price targets ranging from $185 to $340.
The investment firm cited better-than-expected outcomes from the antitrust case against Alphabet’s Search business as a key factor improving market sentiment during the quarter.
Stifel has factored a $3.5 billion fine accrual from the European Commission into its third-quarter 2025 projections, though its forward operating assumptions remain unchanged.
The firm adjusted its target price based on an improved next-twelve-months multiple, reflecting what it describes as "generally favorable antitrust remedies for Search."
Despite the positive price target adjustment, Stifel noted that concerns about potential long-term market share losses to AI search alternatives could limit significant stock performance even if Alphabet exceeds third-quarter 2025 expectations.
In other recent news, Alphabet Inc. has been actively advancing its artificial intelligence initiatives. Planet Labs PBC is utilizing Google’s Earth AI models to analyze satellite data, aiding in mapping deforestation, as part of Google’s broader environmental efforts. Google has also reached an agreement to potentially invest in THG Ingenuity, valuing the e-commerce arm at over $1.01 billion, according to Sky News. In the realm of autonomous vehicles, Alphabet’s Waymo is set to begin manual testing at Newark airport, collaborating with the Port Authority of New York and New Jersey to explore future passenger services.
Analyst firms have also been weighing in on Alphabet’s prospects. Bernstein has raised its price target for Alphabet to $260, citing progress in AI development and regulatory clarity as contributing factors. Citizens has reiterated its Market Outperform rating with a $290 price target, highlighting AI improvements in search functionality as a growth driver. These developments underscore the ongoing momentum in Alphabet’s strategic initiatives and partnerships.
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