Alphabet price target lowered to $200 from $206 at Piper Sandler

Piper Sandler analyst Thomas Champion lowered the firm’s price target on Alphabet to $200 from $206 and keeps an Overweight rating on the shares after speaking with an Antitrust lawyer to discuss the company’s DOJ litigation. In his view, the government has successfully argued the merits within 2 of 3 cases, but time is on Google’s side. The Search trial, which is most significant, has a lengthy remedies and appeals process ahead. Meanwhile, there could be a new administration in the interim and technology is advancing fast. The firm’s expert characterized the Judge’s ruling as “measured,” implying a break-up unlikely. Piper acknowledges the near-term headline risk, but its valuation work suggests this is priced in and net to a view that the Search case and others amount to a distraction. Long-term investors should use recent weakness to accumulate shares, in the firm’s view.