Freedom Broker Upgrades Alphabet to Buy, $400 PT

Freedom Broker analyst Saken Ismailov upgraded Alphabet (NASDAQ: GOOGL) from Hold to Buy with a $400 price target.

“Alphabet (GOOGL) delivered strong 2Q26 results, with revenue and operating income exceeding consensus expectations on accelerating Google Cloud growth and resilient advertising trends.

The results confirm the durability of Search, accelerating enterprise AI monetization, and Google Cloud’s growing contribution to operating income.

However, higher capital expenditures pushed free cash flow into negative territory, while the increase in 2026 capex guidance to $195–205 billion points to growing pressure on the company’s operating margin and cash generation.

We view the results as neutral overall. We raised our 2026–2027 revenue forecasts but lowered our operating margin estimates to reflect higher capex, infrastructure costs, and depreciation.

We maintain our $400 target price for GOOGL and upgrade our rating from Hold to Buy following the stock’s recent correction.”

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