Cantor Fitzgerald Reiterates Overweight Rating on Alphabet, $370 Price Target
Cantor Fitzgerald analyst Deepak Mathivanan reiterated an Overweight rating and $370.00 price target on Alphabet (NASDAQ: GOOGL).
“GOOGL reported 4Q results with revenues and EBIT (ex-Waymo SBC charges) above Street (Visible Alpha) estimates by 2% and 3%, respectively.
At a segment level, search revenue growth accelerated by 2-pts to 15% ex-FX, driven by increases in usage from AI experiences.
Cloud delivered revenue growth of +48% y/y, the strongest in over four years, from healthy adoption of Enterprise AI products.
For FY26E, GOOGL guided Capex to a significant range of $175-185B, up ~100% y/y at mid-point, to support the strong demand from core GOOGL services and enterprise customers.
While the company’s Capex projections for FY26E came in much higher vs. expectations, 4Q results should reinforce confidence in GOOGL’s competitive position in various layers of the AI-stack and help investors underwrite healthy ROIC for incremental investments.
We continue to believe that GOOGL is well-positioned to deliver strong growth over the next few quarters as AI benefits compound over time.
We have raised our FY27E revenues and EBIT estimates by 2% and 3%, respectively. We reiterate our Overweight / Top Pick rating and our 12-month $370 PT.”
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