Oppenheimer has adjusted its price target for Alphabet (GOOG, Financial), raising it from $200 to $220 while maintaining an Outperform rating. This decision is influenced by a recent survey indicating that consumers are progressively adopting AI Mode, with its real-time query capabilities making it more appealing than ChatGPT.
An important factor is Alphabet's valuation in connection to Waymo, estimated at $300 billion, with the Search division currently trading at 6.2 times its projected 2025 EBITDA. This suggests to Oppenheimer that current AI-related risks are being adequately discounted.
The survey also reveals that among those knowledgeable about AI, 77% prefer AI Mode, with 66% believing it's superior to traditional search and 60% favoring it over ChatGPT. Furthermore, 53% frequently engage with links presented in AI Mode. Lastly, the firm has increased its forecasts to pre-tariff levels, reflecting a stable macroeconomic environment.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 18 analysts, the average target price for Alphabet Inc (GOOG, Financial) is $201.56 with a high estimate of $225.00 and a low estimate of $185.00. The average target implies an upside of 15.07% from the current price of $175.16. More detailed estimate data can be found on the Alphabet Inc (GOOG) Forecast page.
Based on the consensus recommendation from 21 brokerage firms, Alphabet Inc's (GOOG, Financial) average brokerage recommendation is currently 1.6, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Alphabet Inc (GOOG, Financial) in one year is $200.18, suggesting a upside of 14.28% from the current price of $175.16. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Alphabet Inc (GOOG) Summary page.
