Jefferies analyst Brent Thill maintained a Buy rating on Alphabet Class A (GOOGL – Research Report) yesterday and set a price target of $200.00.
Brent Thill has given his Buy rating due to a combination of factors that highlight Alphabet’s potential for long-term growth despite current macroeconomic challenges. The company’s valuation appears attractive, trading at a significant discount compared to its historical averages, which presents a favorable risk/reward scenario. Alphabet’s stock has declined significantly since its Q4 earnings, yet it remains resilient due to its strong fundamentals.
Thill also points out the strength of Alphabet’s Cloud and AI segments, which are expected to continue gaining traction and market share. Despite some short-term pressures on advertising revenue due to tariff uncertainties and cautious spending, Alphabet’s diverse revenue streams, including YouTube’s unique position and Google Cloud’s potential boosted by AI advancements, provide a solid foundation for future growth. The company’s disciplined cost management and strategic investments in cloud and AI infrastructure further support the Buy rating.
In another report released today, Roth MKM also maintained a Buy rating on the stock with a $180.00 price target.