Bernstein Raises Alphabet Price Target to $335, ‘Has Turned Into a Safe Harbor’

Bernstein SocGen Group analyst Mark Shmulik raised the price target on Alphabet (NASDAQ: GOOGL) to $335.00 (from $305.00) while maintaining a Market Perform rating.

“Google has turned into a safe harbor —appealing to those worried of an AI bubble, those bullish on AI but wary of OpenAI, and those simply betting on a strong ad market—thanks to its strong execution across all verticals: AI (Gemini adoption, TPU traction), search, Cloud, and YouTube, alongside management’s reassurance that AI products are expanding the search pie without diluting monetization.

Engagement and advertiser checks point to a solid 4Q setup, supported by positive read across from Meta earning and FX tailwinds.

Competitive threats from TikTok and ChatGPT appear more impactful to smaller platforms than to core search.

The valuation, however, has grown stretched as investors crowd into the safe harbor, and rising competition across AI and search—from OpenAI, Meta, Anthropic, Amazon, and the Chinese players— that all have their own AI ambitions suggests Google’s era of unchallenged dominance may yet face at least one more challenge.

We remain Market-Perform, PT $335/share (+$30). We value Alphabet using a 50/50 combination of 2027e EV/ EBIT multiple of 24x (+1X) and a DCF using a WACC of 10% and a terminal growth of 3.5%.

We take up Google Cloud estimates and slightly tweak OpEx and DCF assumptions. We allocate higher multiple to reflect Google’s solid execution across verticals.

We consider Alphabet primarily a digital advertising business and benchmark valuation to comparable peers in this industry set.”

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