BMO Capital analyst Brian Pitz has reiterated their bullish stance on GOOGL stock, giving a Buy rating on April 25.
Brian Pitz has given his Buy rating due to a combination of factors that highlight Alphabet’s strong growth potential and strategic positioning. The company’s Search segment has shown impressive growth, with a 12% increase in FX Neutral Search, surpassing both BMO and Street forecasts. This growth is driven by the rising adoption of AI Overviews, which have seen a 50% increase in users since October, and the monetization of these AI-driven searches remains robust.
Additionally, Alphabet’s Google Cloud Platform (GCP) continues to experience high demand, with a 28% growth rate that aligns with expectations. The introduction of advanced technologies like the Ironwood TPU, which significantly enhances compute power and efficiency, positions GCP for further growth as capacity expands. Furthermore, YouTube Shorts is effectively capturing direct response advertising budgets, with a notable increase in engaged views, indicating strong user engagement. These factors, combined with attractive valuation metrics, support the Buy rating for Alphabet’s Class A stock.
In another report released on April 25, DBS also maintained a Buy rating on the stock with a $205.00 price target.
GOOGL’s price has also changed slightly for the past six months – from $162.720 to $159.280, which is a -2.11% drop .