Index falls as earnings results weigh; pound above $1.33, Bodycote soars
Investing.com - Wedbush has raised its price target on Alphabet (NASDAQ:GOOGL) stock to $225.00 from $200.00 while maintaining an Outperform rating following the company’s strong quarterly performance. The move aligns with the broader Wall Street sentiment, as InvestingPro data shows a strong analyst consensus of 1.54 for the $2.32 trillion tech giant.
The research firm has increased its third-quarter and 2025 estimates, now projecting revenue of $99.1 billion (up 12.3% year-over-year) and operating income of $32.7 billion (33.0% margin), representing increases of 3% and 4% respectively from previous forecasts. This outlook builds on Alphabet’s impressive 13.07% revenue growth over the last twelve months, according to InvestingPro data.
Wedbush’s revised outlook includes expectations for 3Q Search revenue growth of 9.5% year-over-year (up from 8.0%), YouTube Ads revenue growth of 11.0% (up from 8.0%), and Cloud revenue growth of 27.5% (up from 24.0%).
For the full year, Wedbush has raised its revenue and operating income estimates by approximately 2% and 3% respectively, noting that Alphabet shares are trading at approximately 18.9 times their revised 2026 GAAP EPS estimate.
The firm describes Alphabet’s current valuation as "undemanding," highlighting that shares are trading at a discount to both digital advertising peers (26x) and the S&P 500 multiple (21x), with potential for multiple expansion in coming quarters as investor confidence grows regarding the macro environment, regulatory risks, and generative AI impacts.
In other recent news, Alphabet’s strong earnings and revenue performance has caught the attention of several analysts. UBS raised its price target for Alphabet to $202, highlighting the company’s impressive earnings report, with Search growth surpassing investor expectations. JMP Securities also increased its price target to $225, attributing the company’s success to AI-driven results, particularly in the Search, YouTube, and Cloud segments. KeyBanc Capital Markets followed suit, raising its target to $230, emphasizing the role of artificial intelligence in driving momentum across Alphabet’s business units.
Stifel raised its price target to $222, citing solid first-quarter results and healthy advertising trends in Search and YouTube. Additionally, BMO Capital increased its target to $225, noting strong performance in the second quarter and revising its estimates for 2025 and 2026 upwards. These developments reflect a positive outlook from analysts who acknowledge Alphabet’s robust growth and strategic use of AI.
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