Justin Post, an analyst from Bank of America Securities, reiterated the Buy rating on Alphabet Class A (GOOGL – Research Report). The associated price target remains the same with $225.00.
Justin Post has given his Buy rating due to a combination of factors including Alphabet’s impressive growth in search volumes and its strategic expansion in cloud capacity. The company’s search queries have grown significantly, with a 12% compound annual growth rate, which has contributed to a 19% increase in search revenues. This growth indicates a strong potential for revenue generation, driven by increased usage rather than just improved monetization.
Additionally, Alphabet’s advancements in AI and its strategic investments in AI-related technologies are expected to unlock new monetization opportunities. The introduction of the Gemini app and the company’s focus on operational efficiency further support its growth prospects. The valuation of Alphabet’s stock is also considered attractive, trading below its historical premium compared to the S&P 500, which presents a compelling investment opportunity. Upcoming events such as the Cloud Next Conference and Google I/O are anticipated to serve as catalysts for further growth and investor confidence.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $220.00 price target.