Freedom Broker Downgrades Alphabet to Hold, $400 Price Target
Freedom Broker analyst Saken Ismailov downgraded Alphabet (NASDAQ: GOOGL) from Buy to Hold with a price target of $400.00 (from $365.00).
“Alphabet (GOOGL) reported stronger-than-expected results, primarily driven by significant revenue growth and margin expansion in Google Cloud, alongside record Google Search metrics fueled by the rollout of AI Overviews and AI Mode, enhanced AI-driven monetization, and successful positioning against ChatGPT.
Demand for the cloud segment is accelerating so rapidly that its backlog nearly doubled in Q1 2026, partly driven by demand for the company’s custom TPU chips.
Furthermore, the development and deployment of proprietary TPUs significantly reduced the cost of serving Gemini queries, heavily supporting the company’s operating margin despite growing CAPEX.
Under these circumstances, management’s upward revision of its 2026 CAPEX guidance does not raise major concerns, as the increase is moderate and justified by clear monetization channels, primarily through Google Cloud and Google Search.
We view Alphabet’s results positively but are downgrading our rating from Buy to Hold following the stock’s strong post-earnings rally.
We are raising our Price Target (PT) from $365 to $400, implying a 28x P/E multiple on FY2027E earnings.”
The price target and rating on this page are the opinion of the issuing research firm and its analyst, not of Price Target. This page is published for informational purposes only and is not investment advice, a recommendation, or an offer to buy or sell any security. Past performance does not guarantee future results. Consider your own circumstances and consult a licensed financial adviser before making investment decisions.
This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.
