Citizens Financial Group maintained its Market Outperform rating on Alphabet Inc. (NASDAQ: GOOGL) shares, citing sustained growth in the company’s cloud and artificial intelligence segments.
The firm, led by analyst Andrew Boone, kept its $515 price target, which implies a 48% premium to Alphabet’s closing price of $346.96 on Tuesday. The target is based on a 32x multiple of Citizens’ 2027 GAAP earnings per share estimate of $16.27. Alphabet’s current P/E ratio stands at 17.38, while its PEG ratio is 0.15, reflecting a valuation below historical averages.
Boone highlighted Alphabet’s expanding consumer ecosystem, anchored by search, YouTube, and Android platforms, alongside the accelerating adoption of its Google Cloud Platform. The analyst also emphasized the company’s leadership in AI, pointing to the rapid growth of its Gemma AI models, which have surpassed one billion downloads and found applications in sectors such as NASA.
Additional AI-driven products were noted, including the Antigravity agentic coding tool, now integrated into Gemini Enterprise subscriptions. The firm also referenced new personalization features in Search and News as contributors to long-term value creation.
Citizens’ outlook contrasts with Rosenblatt’s recent initiation of Alphabet coverage with a Buy rating and a $410 price target. Alphabet’s shares have gained 68% over the past year, outperforming broader tech benchmarks amid strong demand for AI infrastructure and cloud services.
