Tech giant Alphabet (GOOGL) has drawn analysts’ attention thanks to its strong position and growth prospects in the rapidly-growing artificial intelligence (AI) market, solid financial performance, and attractive valuation.
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Alphabet offers diverse lines of businesses and remains a leader in many of them, including Google Search, Google Cloud services, digital advertising, and self-driving technology through Waymo.
Notably, GOOGL stock received four analyst ratings this week, as experts updated their views ahead of the third-quarter results. Here’s a summary of their views.
HSBC Praises Google’s AI Strategy
HSBC analyst Paul Rossington initiated coverage of GOOGL stock with a Buy rating and a $285 price target, implying nearly 16% upside potential. Rossington praised Google’s AI initiatives, including the Gemini project, Ironwood chips, and gold-standard datasets.
He noted that Google Search and Google Cloud remain Alphabet’s most valuable businesses, and YouTube continues to drive growth. He expects subscriber growth in YouTube Music and Premium to support improved profit margins across these core areas.
Wells Fargo Likes Google Search Business
Wells Fargo analyst Ken Gawrelski meaningfully raised his price target from $187 to $236, but maintained a Hold rating. The revised target implies a modest 4% downside potential.
Gawrelski lifted his estimates for Google’s Search business for the third and fourth quarters, citing better-than-expected performance. He believes that broader benefits from integrating AI Mode into the default search bar will materialize in 2026. Although investor sentiment toward Alphabet has improved, he cautioned that the company still faces challenges, justifying his neutral stance.
BofA and Jefferies Stay Bullish on GOOGL
Bank of America Securities analyst Justin Post reiterated his Buy rating and $252 price target, implying 2.5% upside potential. Post highlighted the Gemini AI app’s evolving interface, which is transitioning from a simple chatbot to a dynamic, scrollable feed featuring suggested ideas and prompts with visuals.
Additionally, Jefferies analyst Brent Thill maintained his Buy rating and $285 price target. Thill recently raised his price target from $230 to $285, citing Gemini’s strong positioning in the AI ecosystem.
Is GOOGL Stock a Good Buy?
Overall, GOOGL stock has a Strong Buy consensus rating on TipRanks. This is based on 30 Buys and eight Hold ratings. The average Alphabet price target of $249.61 implies 1.6% upside potential from current levels. Year-to-date, GOOGL stock has gained 30.3%.
