Guggenheim Keeps Buy Rating on Alphabet A, Raises PT to $210 from $190.
Guggenheim Securities has maintained its Buy rating on Alphabet Inc. (NASDAQ: GOOGL) while raising its price target to $210 from $190. The firm cited strong financial performance and robust growth prospects as reasons for the upward revision.
Alphabet Inc. reported solid earnings for the second quarter of 2025, with revenue growing at a double-digit pace and profitability improving. The company's core advertising business continued to perform well, benefiting from strong demand for digital advertising services. Additionally, Alphabet's cloud computing segment, Google Cloud, saw significant growth driven by increasing adoption of AI and machine learning services [1].
Guggenheim's new price target reflects the firm's expectation of continued growth in Alphabet's advertising and cloud computing segments. The analyst projects that Alphabet's revenue will grow by approximately 20% year-over-year, driven by strong demand for digital advertising and cloud services. The company also expects Alphabet's earnings per share to grow at a similar pace, supported by cost efficiencies and revenue growth [1].
Other analysts have also expressed optimism about Alphabet's financial outlook. Morgan Stanley, for instance, recently raised its price target to $220, citing the company's strong performance in the advertising market and its potential in the cloud computing segment. Meanwhile, Goldman Sachs maintained an Overweight rating with a price target of $215, noting Alphabet's dominant position in the search engine market and its growth prospects in AI and machine learning [2].
Despite the positive outlook, Guggenheim acknowledged that Alphabet faces some challenges, including increased competition in the digital advertising market and regulatory pressures. However, the firm believes that Alphabet's strong balance sheet, experienced management team, and innovative culture position it well to navigate these challenges and continue to deliver strong financial performance.
References:
[1] https://www.theglobeandmail.com/investing/markets/stocks/GOOGL/pressreleases/33453637/alphabet-reports-strong-q2-2025-earnings/
[2] https://www.marketbeat.com/instant-alerts/alphabet-nasdaqgoogl-price-target-increased-to-220-by-morgan-stanley-2025-07-16/
Comments
No comments yet