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Investing.com - Wedbush has raised its price target on Alphabet (NASDAQ:GOOGL) stock to $245.00 from $225.00 while maintaining an Outperform rating. The stock, currently trading near its 52-week high of $214.65, has delivered an impressive 35% return over the past year. According to InvestingPro data, analysts maintain a Strong Buy consensus on Alphabet, with price targets ranging from $166 to $248.
The research firm cited three key factors supporting the potential for multiple expansion in coming quarters, arguing that Alphabet’s current discount relative to peers is unwarranted. With a P/E ratio of 22.2x and robust revenue growth of 13%, InvestingPro analysis suggests the stock may be undervalued despite its recent strong performance.
Wedbush noted that a recent judge’s decision has removed lingering risks associated with a potential worst-case regulatory outcome for Google, which represents a significant positive development for the company.
The firm also pointed out that concerns about generative AI’s impact on Alphabet’s business are fading, with the company demonstrating its ability to navigate this transition period while successfully repositioning itself as a winner in the AI space.
Wedbush highlighted that Alphabet shares continue to trade at a discount compared to META, suggesting investor focus may shift toward Alphabet’s positioning relative to other megacap peers, with the firm expressing increased confidence in the long-term durability of Google’s Search business.
In other recent news, several investment banks have adjusted their price targets for Alphabet following recent legal developments. Goldman Sachs reiterated its Buy rating with a price target of $234.00, maintaining a positive outlook on the company’s shares despite the antitrust case remedies. Barclays raised its price target to $250.00, citing reduced legal risks as a significant factor and drawing parallels to past situations where Alphabet saw valuation expansions. KeyBanc Capital Markets increased its price target to $265.00, describing the Department of Justice ruling as more favorable than expected. DA Davidson also adjusted its target to $190.00, highlighting the strength of Google’s Tensor Processing Units in the AI market. This adjustment reflects the growing competitiveness of Google’s technology against NVIDIA. Meanwhile, German Chancellor Friedrich Merz emphasized the European Union’s sovereignty over its digital market regulations in discussions with U.S. President Donald Trump. These developments indicate a shifting landscape for Alphabet, influenced by legal, technological, and regulatory factors.
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