Analyst Justin Post of Bank of America Securities maintained a Buy rating on Alphabet Class A (GOOGL – Research Report), retaining the price target of $200.00.
Justin Post has given his Buy rating due to a combination of factors influencing Alphabet’s performance and potential. Despite a slight decline in Google’s global search share, the company remains a dominant player with a significant market presence. The flat month-over-month traffic for Google suggests stability, while the expansion of AI Overviews in search is seen as a strategic move to enhance user experience and potentially boost search monetization.
Furthermore, Alphabet’s valuation appears attractive, trading at a multiple that reflects its leadership in AI. The ongoing improvements in Google’s AI offerings, including the development of Google Gemini and its integration with other Google assets, are expected to strengthen its competitive position. These elements, combined with the anticipation of future catalysts such as the Google I/O event, underpin the positive outlook and justify the Buy rating.
Post covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Meta Platforms, and Alphabet Class C. According to TipRanks, Post has an average return of 21.9% and a 65.45% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a $220.00 price target.