Stifel Raises Alphabet Price Target to $420
Stifel analyst Mark Kelley raised the price target on Alphabet (NASDAQ: GOOGL) to $420.00 (from $387.00) while maintaining a Buy rating.
“Net revs of $95bn (+24% y/y; +500bps accel) and OI of $40bn (42% margin) were 3% and 10% ahead of consensus, respectively, with Cloud growth significantly outpacing the Street (+63% y/y vs. cons +47%), likely matching the buyside.
Acceleration was also supported by better Search & Other revs +19% y/y (vs. Street +16.4% y/y), as Gemini-integrated overviews muted disruption fears by driving record query volumes and engagement.
Cloud backlog upticked to $462bn (~50% recognized over next 2yrs) reflecting continued enterprise demand.
Management underscored its long-term AI conviction by raising the ‘26 Capex guide to $180 190bn ($175-185bn prior) and confirmed it will begin selling TPUs to a “select group of customers” for use within their own DCs (small revs later in ’26, vast majority in ’27).
We continue to believe GOOGL is the one to own in our group and key beneficiary of AI-led momentum. Reiterate Buy; TP goes to $420.”
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