Alphabet price target raised to $135 from $125 at Morgan Stanley

Morgan Stanley analyst Brian Nowak raised the firm’s price target on Alphabet to $135 from $125 and keeps an Overweight rating on the shares, citing the view that Alphabet is positioned to drive the next generation of AI technologies with many new AI products coming within months. The compute intensity of these products may pressure near-term cash flow and EBIT, but the firm is encouraged by Alphabet’s headcount reductions and efficiency initiatives, the analyst tells investors in a post-earnings research note.