In a report released today, Justin Post from Bank of America Securities maintained a Buy rating on Alphabet Class A (GOOGL – Research Report), with a price target of $225.00.
Justin Post has given his Buy rating due to a combination of factors, primarily focusing on the potential growth and strategic advancements in Alphabet’s cloud and AI sectors. The upcoming Google Cloud Next conference is expected to highlight significant AI integrations and product launches, which could enhance investor sentiment and drive demand for Alphabet’s cloud services.
Furthermore, the cloud division is positioned as a long-term growth engine for Alphabet, with projections indicating substantial revenue and margin expansion by 2027. This growth is supported by unique AI assets and infrastructure, which are expected to differentiate Google Cloud’s offerings and capture additional market share. These factors contribute to the belief that the cloud business will significantly enhance Alphabet’s overall valuation, justifying the Buy rating.
In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a $200.00 price target.