Citizens reiterated its 'Market Outperform' rating on Alphabet Inc. shares on Tuesday, lifting its price target to $515 from a prior level, citing the company's expanding cloud infrastructure and accelerating artificial intelligence adoption.
The brokerage's outlook reflects Alphabet's broad consumer reach across Search, YouTube, and Android, alongside sustained revenue growth in its Google Cloud Platform segment. Citizens estimates Alphabet's 2027 GAAP earnings per share at $16.27, implying a price-to-earnings multiple of approximately 32 times that estimate at the new target. The stock closed at $346.96 on Monday, trading at a P/E ratio of 17.38 and a PEG ratio of 0.15.
Andrew Boone, an analyst at Citizens, underscored the recommendation amid reports of robust revenue growth among leading AI firms OpenAI and Anthropic. The firm's stance aligns with broader market optimism surrounding Alphabet's positioning in the AI cycle, particularly as its Gemma AI model family surpasses 1 billion downloads.
Rosenblatt initiated coverage of Alphabet on Tuesday with a 'Buy' rating and a $410 price target, emphasizing the company's strong competitive footing in enterprise AI solutions. The dual endorsements follow recent product developments, including the integration of Google's Antigravity agentic coding tool into Gemini Enterprise subscriptions and the rollout of personalization features across Search and Google News.
Alphabet's shares have surged 68% over the past 12 months, reflecting investor confidence in its cloud and AI initiatives. The company's cloud revenue growth and high-margin advertising business continue to underpin its valuation, with analysts pointing to sustained demand for AI-driven services.
