Mizuho Affirms Outperform on Alphabet, $460 Price Target

Mizuho analyst Lloyd Walmsley reiterated an Outperform rating and $460 price target on Alphabet (NASDAQ: GOOGL).

“We maintain our Outperform rating on Alphabet, despite rising concerns around the search business, as we see more tangible upside from the TPU business not reflected in consensus estimates, versus downside risk to the core search business, acknowledging we are below-consensus on search through ’28.

We move Google Cloud estimates to significantly above consensus, by 11% / 9% on ’28 revenue / segment OI, with $100B of TPU revs in ’28.

In this note, we lay out a framework for explicit forecasts for TPUs on revenue and OI.

We maintain our $460 Price Target (+35%), rolling to 2028 but using a lower 23x P/E multiple (from 30x previously on ’27) given variability of numbers, more cyclicality, growing search risks and multiple contraction in the group.

We like the risk/reward skew of +62%/-31% to $550/$235 in our bull/bear cases.”

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