Rosenblatt Reiterates Neutral on Alphabet, $393 PT
Rosenblatt analyst Barton Crockett reiterated a Neutral rating and $393 price target on Alphabet (NASDAQ: GOOGL).
“Alphabet’s 2Q26 had something for everyone — both bulls and skeptics. For the bulls, Cloud surged as expected. But, for the skeptics, so did capex. Search was steady — in line with expectations.
YouTube accelerated and beat, which was great.
But, YouTube growth was thanks in part to a World Cup lift that is obviously episodic and Alphabet is signaling that next quarter ad trends in both lines could soften a bit, with tougher comps in search, and an expected ~200 bps reversal of currency tailwinds at current rates mainly impacting those two lines.
The report leaves us continuing to see Alphabet as a great company; but also one with outsized exposure in its all-important cloud business to a frontier LLM model sector that is evolving into something much more competitive than once envisioned.
We also see rival LLMs over the long-term stepping meaningfully into Alphabet’s core search arena of researching things to buy.
That lessens our willingness to look past the currently heightened capex cycle. We retain a NEUTRAL rating, and $393 price target, based on a 20x EV of 2026E Adj.
EBITDA, supported by a high 20s EBITDA CAGR.”
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