Morgan Stanley’s top analyst, Brian Nowak, increased the price target for Alphabet’s (GOOGL) stock right ahead of its Q2 results, reflecting his bullish view on Google’s earnings. Nowak maintained his “Buy” rating on GOOGL stock and raised the price target from $185 to $205. The revised price target implies 7.8% upside potential from current levels. Meanwhile, GOOGL stock has gained 25.5% in the past three months.
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Alphabet is scheduled to report its second-quarter fiscal 2025 results after the market closes on July 23. Wall Street expects Alphabet to post adjusted earnings per share (EPS) of $2.18 on revenue of $93.91 billion.
Nowak ranks #822 out of the 9,891 analysts tracked on TipRanks. He has a 61% success rate and an average return per rating of 6.80%.
Here’s Why Nowak Is Bullish About GOOGL Stock
Nowak’s price target revision comes as part of an overall review of the internet space. The analyst increased price targets across the industry, reflecting a more favorable macroeconomic backdrop and lower tariffs on China. He also cited stronger innovation cycles in artificial intelligence (AI) and improving transparency as reasons for his bullish stance on the sector.
Importantly, Nowak believes that Google’s revenues will rise rapidly, driven by a surge in generative AI adoption and monetization. He sees GenAI accelerating revenues at both Google and peer Meta Platforms (META) but favors Alphabet over Meta in the near term due to its more attractive valuation.
Meanwhile, the analyst pointed to Alphabet’s lawsuit with the Department of Justice (DOJ), which alleges its Search dominance. Nowak highlighted that potential remedial measures expected in September could clear the regulatory overhang and positively impact investors’ confidence in Alphabet’s long-term potential. The analyst expects Alphabet to maintain profitable Search growth and product momentum.
Is GOOGL Stock a Buy, Hold, or Sell?
Many analysts have raised the price target for Alphabet stock ahead of the earnings. On TipRanks, GOOGL stock has a Strong Buy consensus rating based on 30 Buys and nine Hold ratings. Also, the average Google price target of $205.71 implies 8.2% upside potential from current levels.
