Raymond James Reiterates Strong Buy Rating on Alphabet, $400 Price Target
Raymond James analyst Aaron Kessler reiterated a Strong Buy rating and $400.00 price target on Alphabet (NASDAQ: GOOGL).
“The Call: Cloud growth accelerated to 48% as RPO grew 150%+ propelled as new $1B+ deals in 2025 surpassed the prior three years combined as ad momentum was broad-based propelled by retail and DR supporting our previous Street high 2027 estimates (LINK).
Reiterate Strong Buy on favorable AI Stack positioning across infra, models and distribution surfaces (i.e., search evolution to AIO/AIM generating more valuable clicks) remains underappreciated with GOOG at 25x 2027 P/E trading below AAPL at 29x.
Read-through: we see GOOG/META (LINK) reads as positive for RDDT (LINK) who reports Thursday.
AMC that is up against negative sentiment. Recap: Google beat by ~2% with Search/Cloud revenues up 17%/48% (vs. Street at 13%/36% and buyside expectations of 15%/40%).
Operating income of $38.0B (OM: 33.4%; ex-one-time Waymo SBC charge) beat Street expectations of $36.9B (OM: 33.2%). Capex for 2026 was guided to $175-180B, up 97% y/y at the midpoint.”
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