Brian Nowak, an analyst from Morgan Stanley, maintained the Buy rating on Alphabet Class A (GOOGL – Research Report). The associated price target remains the same with $185.00.
Brian Nowak has given his Buy rating due to a combination of factors, primarily revolving around the current market sentiment and valuation of Alphabet Class A’s stock. Despite concerns about AI-driven disruptions and decelerating paid click growth, Nowak believes that the market’s reaction has been overly negative, creating a strong buying opportunity as the stock is trading at a trough multiple of approximately 15 times the projected 2026 earnings per share.
Nowak also addresses the debates surrounding potential disruptions in Google’s monetizable behavior, asserting that there is no significant evidence of a decline in commercial activity. He highlights that commercial queries are actually growing, which supports the company’s monetization potential. Furthermore, Nowak anticipates upcoming events that could showcase Google’s leadership in generative AI, potentially leading to a re-rating of the stock. With a price target of $185, representing a 22% upside, Nowak remains optimistic about Alphabet’s future performance.
In another report released yesterday, Citi also maintained a Buy rating on the stock with a $200.00 price target.