The stock of Google parent company Alphabet (GOOGL) has received multiple price target increases from leading Wall Street analysts.
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Mark Kelley, a five-star rated analyst at Stifel Financial (SF), lifted his price target on GOOGL stock to $225 from $200 while maintaining a Buy rating on the shares. The new price target at Stifel indicates potential upside of 17% from the stock’s current level.
At the same time, Ken Gawrelski, a four-star rated analyst at Wells Fargo (WFC), raised his price target on Alphabet’s stock to $190 from $187, and reiterated a Hold-equivalent equal weight rating on the shares. While Wells Fargo remains positive on GOOGL stock, it has questions about the company’s artificial intelligence (AI) strategy.
“Dominant Leader”
In his note to clients, Kelley at Stifel wrote that Alphabet remains the “dominant leader in search and ad-supported online video,” and also has a “long-term growth opportunity” in both AI and and digital advertising. Stifel also likes that Alphabet has a number of tools for businesses including AI-powered advertising solutions, in addition to Google Gemini, the company’s flagship AI assistant.
Late last year, Alphabet unveiled a new Gemini model customized for Google Search. The model provides generative AI summaries that appear at the top of Google Search results. Kelley praised the new Gemini and said Alphabet stands above the AI crowd. “We view the competitive threat narrative as largely overdone,” he wrote.
GOOGL stock has risen 35% in the last 12 months.
Is GOOGL Stock a Buy?
The stock of Alphabet has a consensus Strong Buy rating among 31 Wall Street analysts. That rating is based on 24 Buy and seven Hold recommendations assigned in the last three months. The average GOOGL price target of $215.75 implies 12.95% upside from current levels.
