Citizens kept its Market Outperform designation on Alphabet Inc. and preserved a $385.00 target for the stock, which trades around $333.04. According to InvestingPro data, analyst price targets for Alphabet span a wide range from $185 to $432, reflecting diverse views among market participants.
Analyst rationale
Andrew Boone, the analyst at Citizens, reiterated the positive rating and emphasized artificial intelligence as the key factor enhancing multiple parts of Google’s business. Citizens argues that AI is expanding the total addressable market for Search, encouraging higher adoption of cloud services and improving advertiser outcomes through better performance metrics.
Within that framework, Citizens highlighted accelerating adoption of Gemini and ongoing model improvements. The research firm describes these developments as indicating a "long runway for revenue growth," suggesting that both Search and Cloud services could see renewed acceleration in revenue generation.
Models vs. potential acceleration
Notably, Citizens has not incorporated the possibility of accelerated growth driven by AI and Gemini into its current financial projections, even while maintaining a bullish outlook for Alphabet’s shares. That conservatism means the firm’s stated target and projections do not reflect any upside that could emerge if Search and Cloud growth re-accelerate faster than currently modeled.
Recent operational and market developments
Alphabet’s cloud business recently posted a 48% year-over-year growth rate, which surpassed Jefferies’ 36% estimate and accelerated from the prior quarter’s 34% growth. Management has also signaled a substantial increase in capital spending, forecasting FY26 capital expenditures in the range of $175-185 billion versus $91 billion in FY25.
In the analyst community, Bernstein raised its price target on Alphabet to $335, citing the company’s leadership in AI and noting that this positioning appeals to investors concerned about an AI bubble.
Related corporate and industry news
Beyond the ratings and financial metrics, Google, a unit of Alphabet, has taken legal action against the Chinese company Ipidea, a move that effectively halted Ipidea’s operations over alleged concerns about cyber weapons. In separate industry movement, Microsoft announced an executive change in its security organization: Hayete Gallot, formerly of Google’s cloud unit, will replace Charlie Bell as security chief. Bell will move into a role focused on engineering quality while still reporting to CEO Satya Nadella.
Outside the large-cap cloud and internet space, Aletheia Capital initiated coverage of Teradyne with a Buy rating and a $400 price target, forecasting that Teradyne’s earnings could triple between 2025 and 2027 as testing demand and new customer wins accelerate.
This report presents the key analyst view, supporting data, and related market moves that frame Citizens’ continued Market Outperform call on Alphabet.