Oppenheimer analyst Jason Helfstein raised the price target on Alphabet (GOOGL) stock after the Department of Justice’s (DOJ) remedial measure allowed Google to keep the Chrome browser, calling it the “best-case outcome” for Google. He maintained his “Buy” rating and lifted the price target from $235 to a new Street High of $270, implying 27.7% upside potential from current levels. GOOGL stock jumped over 7% in extended trading yesterday, following the federal judge’s decision.
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Helfstein is a four-star analyst on TipRanks, ranking #2,408 out of 10,004 analysts tracked. He has a 47% success rate and an average return per rating of 4.30%.
GOOGL Gets a New Street High Price Target
Helfstein noted that Judge Amit Mehta’s remedy removes the medium-term overhang on Google’s valuation and sentiment by eliminating the risk of the proposed structural breakup. Importantly, Google will not have to divest Chrome or Android, preserving the company’s scale and synergies across its ecosystem. Meanwhile, Google can continue paying Apple (AAPL) for its Search users, although it cannot enter into any “exclusive contracts” for setting defaults.
He believes that with regulatory uncertainty behind it, Google can now focus on innovation and adapt to a more competitive environment. The firm also pointed to the rising adoption of Alphabet’s AI innovations in Search and other tools, as well as favorable valuation prospects for Waymo, as additional catalysts.
Finally, Helfstein believes that Google and Apple can now also partner on artificial intelligence (AI) projects, acting as a positive catalyst for both tech giants. This partnership could go beyond the current search deal and include shared AI research, building AI tools together, or combining Google’s AI power with Apple’s hardware and software.
Is GOOGL Stock a Buy, Hold, or Sell?
On TipRanks, GOOGL stock has a Strong Buy consensus rating based on 27 Buys and nine Hold ratings. The average Alphabet price target of $217.81 implies 3.1% upside potential from current levels. Year-to-date, GOOGL stock has gained 11.9%.
