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Investing.com -- Phillip Securities has downgraded Google stock to an Accumulate rating, pointing to the sharp rally in its share price following last week’s U.S. antitrust ruling. The broker raised its target price to $265 from $235.
Google (NASDAQ:GOOGL) shares jumped last week after U.S. District Judge Amit Mehta imposed only limited remedies in the Department of Justice’s (DOJ) landmark antitrust case.
In 2024, the court found Google had maintained an illegal monopoly in search services and text advertising through exclusionary conduct.
But the most severe penalties sought by the DOJ — including a forced sale of the Chrome browser and restrictions on Android — were rejected.
Instead, the ruling barred Google from entering into certain exclusive agreements and required it to share parts of its search index and user-interaction data. The decision was seen as far less disruptive to Google’s business model than feared, fueling investor relief.
“Google will not be required to divest Chrome; nor will the court include a contingent divestiture of the Android operating system in the final judgment,” the decision stated.
“Plaintiffs overreached in seeking forced divestiture of these key assets, which Google did not use to effect any illegal restraints.”
Mehta ordered the parties to reconvene by Sept. 10 to finalize the judgment.
Investors viewed the outcome as leaving minimal consequences for the company.
Phillip Securities echoed that sentiment, saying the restrictions are unlikely to erode Google’s competitive position.
“We view the overall ruling positively and believe restrictions on exclusivity have limited impacts on GOOGL given product strength and partner incentives,” Philip Securities analyst Serena Lim Yi Qi.
The brokerage kept its full-year 2025 (FY25) revenue forecast unchanged but lowered its weighted average cost of capital from 7.7% to 7.4%, citing improved sentiment after the court decision.
“We expect GOOGL to continue benefitting from AI-driven product enhancement and operational efficiencies,” the analyst added.
In his decision last Tuesday, Mehta said Google may continue paying to have its products preloaded, but it cannot tie those payments or licensing agreements to exclusivity.