Raymond James analyst Josh Beck upgraded the rating on Alphabet Class C to a Buy yesterday, setting a price target of $400.00.
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Josh Beck has given his Buy rating due to a combination of factors related to Alphabet’s accelerating artificial intelligence initiatives and their impact on future growth. His team’s updated, detailed forecasts for Google Cloud Platform suggest significantly faster revenue expansion than the broader market expects, driven by large-scale TPU and GPU deployments and rapidly growing platform-as-a-service offerings such as Gemini APIs and Vertex AI. He also expects the company’s AI-driven products to move Alphabet into a leading position in what he views as one of the most compelling top-line AI growth stories among publicly traded companies.
In addition, Beck’s analysis of Alphabet’s core Search business incorporates the view that while traditional search activity may soften, this will be more than offset by the scaling of new AI search and assistant experiences, which should strengthen monetization via higher-value queries and better conversion performance. He sees substantial upside from AI assistants distributed across Google’s ecosystem, with the potential to materially raise revenue per user over time. Reflecting this broad-based AI-driven revenue acceleration, he assigns a premium valuation multiple above Alphabet’s historical average, which supports a price target implying attractive upside and underpins his Buy recommendation for the stock.
According to TipRanks, Beck is ranked #322 out of 11984 analysts.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $355.00 price target.