Morgan Stanley Raises Alphabet Price Target to $205 Ahead of Q2 Earnings

Morgan Stanley analyst Brian Nowak raised Alphabet's (GOOGL) price target to $205 from $185, citing a bullish view on Google's earnings. The revised target implies a 7.8% upside potential from current levels. Nowak expects Alphabet's revenues to rise rapidly driven by AI adoption and monetization. He maintained a "Buy" rating on GOOGL stock and a Strong Buy consensus rating on TipRanks.

Morgan Stanley analyst Brian Nowak has raised Alphabet's (GOOGL) price target to $205 from $185, reflecting a bullish view on the tech giant's earnings. The revised target implies a 7.8% upside potential from current levels [1]. Nowak expects Alphabet's revenues to rise rapidly driven by the adoption and monetization of AI technologies.

The analyst maintained a "Buy" rating on GOOGL stock and a Strong Buy consensus rating on TipRanks. Nowak cited stronger innovation cycles and improving transparency as key drivers for the price target increase. He also highlighted growth in generative AI engagement and monetization potential as positive factors [1].

The analyst noted that while the DOJ's ongoing search-related investigation may extend into late 2025, Alphabet's profitability in core search and its product momentum remain focal points for long-term investors. Post-earnings updates expected by next week could influence market confidence further [1].

Alphabet recently secured preliminary court approval to settle a shareholder derivative suit, with no admission of wrongdoing, according to an SEC filing. The firm flagged potential outcomes from the DOJ case, including remedies that may clear the way for a broader Gemini partnership with Apple (AAPL) [1].

Based on the one-year price targets offered by 51 analysts, the average target price for Alphabet Inc is $203.34, with a high estimate of $250.00 and a low estimate of $160.00. The average target implies an upside of +9.88% from the current price of $185.06 [1]. GuruFocus estimates the GF Value for Alphabet Inc in one year at $199.27, suggesting a potential upside of +7.68% from the current price of $185.06 [2].

References:
[1] https://www.investing.com/news/stock-market-news/morgan-stanley-upgrades-pinterest-sees-aws-and-genai-driving-big-tech-4144291
[2] https://www.tradingview.com/news/gurufocus:433bd75d0094b:0-alphabet-googl-gets-price-target-hike-to-215-as-ai-momentum-builds/