Alphabet Class A (GOOGL – Research Report), the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Justin Post from Bank of America Securities maintained a Buy rating on the stock and has a $225.00 price target.
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Justin Post has given his Buy rating due to a combination of factors that reflect a strong position for Alphabet in the search market. Despite new entrants in the AI search landscape like ChatGPT, Alphabet’s Google has maintained a stable global search share, with only a slight year-over-year decline. Google’s traffic remains robust, with daily web visits showing minimal impact from the rising AI competitors. This stability is indicative of Google’s resilience in the face of emerging competition.
Furthermore, Justin Post is optimistic about the potential for AI to enhance Google’s monetization of its search services. With Google management reporting strong growth in search volumes, supported by AI innovations, there is a positive outlook for continued revenue growth. The potential risks, such as increased competition and legal challenges, have been acknowledged, but the overall assessment remains favorable, leading to the Buy rating with a price objective of $225.00.
In another report released on February 6, New Street also maintained a Buy rating on the stock with a $220.00 price target.