Analyst Justin Post from Bank of America Securities maintained a Buy rating on Alphabet Class A (GOOGL – Research Report) and keeping the price target at $185.00.
Justin Post’s rating is based on a combination of factors that suggest a limited financial impact on Alphabet’s earnings from the recent court ruling against Google’s ad tech business. Despite the potential for behavioral or structural remedies, the segment at risk represents a small portion of Google’s overall revenues, minimizing the effect on Alphabet’s bottom line. Additionally, the timeline for any final remedies is extended, with enforcement possibly delayed until 2027 or later, allowing Alphabet time to adapt and potentially mitigate any adverse effects.
Furthermore, while regulatory scrutiny and competitive pressures are increasing, Alphabet’s current valuation appears to already account for these risks. Trading at a lower multiple compared to the S&P 500, Google’s stock price reflects the regulatory and competitive challenges it faces. Therefore, Justin Post maintains a Buy rating, as the potential for growth and the current valuation present an attractive investment opportunity despite the ongoing legal and regulatory challenges.
In another report released today, Roth MKM also maintained a Buy rating on the stock with a $180.00 price target.