Alphabet (GOOGL) Price Target Lifted at KeyBanc on AI and Cloud Momentum

Alphabet Inc. (NASDAQ:GOOGL) is one of the AI Stocks in Focus on Wall Street. On January 26, KeyBanc analyst Justin Patterson raised the price target on the stock to $360.00 (from $330.00) while maintaining an Overweight rating. The firm views AI and Cloud trends structurally favorable for GOOGL, justifying a higher valuation.

According to the firm, the current environment remains favorable for both GOOGL and Meta. It cited several core trends in artificial intelligence emerging that will favor the stock. These trends include compute scale, distribution, and proprietary data matter for AI performance, the acceleration of agentic coding that has accelerated app deployment, as well as user interfaces that are evolving.

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KeyBanc believes that Alphabet and Meta are both well-positioned across these dimensions, and that artificial intelligence is contributing to ad revenue growth supported by both volume and price.

The firm has raised its price target to $360 for GOOGL, a reflection of robust Google Cloud growth and profitability.

Raising GOOGL PT to $360 (26.7x 2027E P/E) – This reflects stronger Google Cloud growth and profitability. As shown by our updated sum-of-the-parts (SOTP) analysis, mix shift toward Google Cloud supports a higher P/E.

Alphabet Inc. (NASDAQ:GOOGL) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses.

While we acknowledge the risk and potential of GOOGL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GOOGL and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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