KeyBanc Raised the Price Target on Alphabet (GOOGL), Says Wall Street Underestimating Google Cloud Potential

​On April 20, KeyBanc analyst Justin Patterson reiterated a Buy rating on Alphabet Inc. (NASDAQ:GOOGL) and raised the price target from $370 to $380. Analysts expect Alphabet Inc. (NASDAQ:GOOGL) to grow its EPS by 13.25% over the next 5 years, and the stock also ranks among our Best Stocks to Buy and Hold For the Next 5 Years.

​Justin Patterson said in a research note that the Street underestimates the rapid ramp-up in Google’s cloud growth. He noted that the continued cloud growth has helped build strong momentum. This is particularly important as search remains in the low double digits.

​KeyBanc forecasts Alphabet’s 2027 EPS nearing $14, supported by Cloud’s acceleration and broader AI opportunities. This projection aligns with broader analyst EPS estimates averaging $13.75 for 2027, though the firm sees upside from Cloud outpacing expectations.

​Alphabet Inc. (NASDAQ:GOOGL) is a technology holding company and the parent of Google. It generates revenue primarily through advertising, cloud computing, and hardware, while overseeing “Other Bets”—subsidiaries in fields like artificial intelligence, autonomous driving (Waymo), and healthcare.

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.

READ NEXT: 10 Best Stocks to Buy While the Market Is Down and 14 Stocks That Will Double in the Next 5 Years. 

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.