Alphabet (GOOGL) may still have more room to run than many expect, at least according to one top Wall Street analyst. In a new note today, top Mizuho analyst Lloyd Walmsley raised his price target on the stock to $420 from $410, while keeping an Outperform rating. His new price target implies about 30% upside from current levels.
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It is worth noting that Walmsley already had higher revenue and earnings forecasts for Alphabet than the broader Wall Street consensus, and this latest move shows even more confidence in the company’s outlook.
Why Walmsley Is Bullish on Alphabet
The analyst said recent signals around Alphabet’s partnership with Anthropic and improved backlog trends support higher growth ahead. As a result, he now expects stronger revenue and margins from Google Cloud than what Wall Street currently estimates.
In fact, Walmsley believes Wall Street is still too conservative. He sees cloud revenue reaching $149 billion by 2027, well above current estimates. At the same time, strong margins could drive a meaningful jump in profits.
He also highlighted upside from TPU-related revenue, which could come with more favorable economics over time. Overall, Walmsley raised his price target to $420, saying Alphabet could benefit as its cloud business becomes a larger part of overall profits.
It is worth noting that Walmsley ranks 175 out of more than 12,000 analysts tracked by TipRanks. He has a success rate of 59%, with an average return per rating of 24% over a one-year timeframe.
Is GOOGL Stock a Buy?
The stock of Alphabet has a consensus Strong Buy rating among 30 Wall Street analysts. That rating is based on 25 Buy and five Hold recommendations issued in the last three months. The average GOOGL price target of $377.90 implies 19% upside from current levels.
