Alphabet Inc. (GOOGL), the tech giant behind Google, is set to release its Q3 results on October 29. Ahead of the report, five-star-rated analyst Mark Shmulik at Bernstein raised his price target from $210 to $260 on GOOGL stock while keeping his Hold rating. GOOGL stock is up by over 1% as of this writing on Thursday.
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Notably, Shmulik ranks 430th out of over 10,000 analysts tracked by TipRanks. He has a success rate of 74% and an average one-year return of 25.3% per rating. For GOOGL stock, his success rate is 73%, with 11 of his 15 ratings proving profitable.
Bernstein Is Bullish on Google’s AI Momentum
Shmulik pointed to eased regulatory concerns and faster AI development as key drivers for the price target hike. He also highlighted Gemini’s rise to the top of app store rankings thanks to its Nano Banana feature.
Additionally, the top-rated analyst highlighted strong growth in Google Cloud Platform (GCP), fueled by higher usage from Anthropic and major AI customer wins. As a result, Shmulik expects the cloud business to continue re-accelerating this quarter.
Despite these positive developments, he warned that competition remains intense, with OpenAI (PC:OPAIQ) holding a strong position.
Overall, Shmulik noted it’s tough to find clear shorting opportunities in the digital ads sector as Q3 earnings near. Digital ad growth continues, helped by the return of advertisers in the Asia-Pacific region after a pause. Following a strong Q2, this quarter’s winners will likely be those that beat earnings expectations and give solid guidance, even with a possibly slower holiday season.
BofA Remains Bullish on GOOGL Stock
Earlier this week, BofA analyst Justin Post also raised Alphabet’s price target to $280 from $252, keeping a Buy rating.
Post believes AI tools aren’t hurting search revenue and expects management to highlight wider adoption of Alphabet’s Gemini AI across its products.
Is Google a Good Stock to Buy?
According to TipRanks, GOOGL stock has received a Strong Buy consensus rating, with 30 Buys and eight Holds assigned in the last three months. The average Google stock price target is $261.53, suggesting a potential upside of 2.62% from the current level.
