KeyBanc on Monday increased its price target for Alphabet (NASDAQ:GOOGL) to $360.00 from $330.00 and retained an Overweight rating on the shares. The newly stated target stands above Alphabet’s then-current trading price of $327.93 and is set in the context of the stock trading near a 52-week high of $340.49.
The research note underscores a favorable backdrop for Alphabet rooted in early, core trends within artificial intelligence. KeyBanc emphasizes three capabilities it regards as essential to AI performance - compute power, distribution networks and access to proprietary data - and ties Alphabet’s positioning on these dimensions to the firm’s more constructive outlook.
The upgrade also reflects what KeyBanc frames as an improving earnings mix, with a greater weighting toward Google Cloud. The firm’s updated sum-of-the-parts analysis raises the justified multiple, with KeyBanc employing a 26.7x multiple on the company’s estimated 2027 price-to-earnings ratio as the basis for the $360 target.
KeyBanc links AI-driven gains to Alphabet’s advertising franchise, asserting that AI contributes to growth through both increased ad volume and improved pricing. On a trailing basis the stock trades at a P/E of 32.41 and InvestingPro data cited in the firm’s context points to a favorable PEG ratio of 0.92 versus near-term earnings growth expectations.
Financial metrics highlighted alongside the target include Alphabet’s net cash position, with more cash than debt on the balance sheet, and recent revenue momentum. InvestingPro figures referenced by KeyBanc show 13.42% revenue growth over the last twelve months. The company’s financial health is described as "GREAT" by InvestingPro, supported by a gross profit margin of 59.17% and a return on equity of 35%.
KeyBanc’s note sits amid a broad spread of analyst expectations for Alphabet, with InvestingPro reporting price targets across the analyst community ranging from $185 to $432. The stock’s recent performance has been notable, with returns of 70.02% over the past six months and 64.43% over the past year.
Other broker commentary cited alongside KeyBanc’s update includes a Stifel raise of its own price target to $346 while maintaining a Buy rating. Stifel’s view is driven by expectations that fourth-quarter advertising results for Search and YouTube will exceed Wall Street consensus.
RBC Capital also moved its target higher, to $375, pointing explicitly to the integration of AI Overviews (AIO) ads across platforms such as Performance Max and Search and noting that conversion rates have remained stable as those ads have been rolled out. Cantor Fitzgerald, by contrast, kept a Neutral rating as the company awaits an antitrust decision from the European Union concerning Alphabet’s $32 billion acquisition of cloud security firm Wiz; that regulatory review has a deadline of February 10, 2026.
The research commentary additionally calls out parallel positive sentiment toward Meta, noting that both companies are seen as well positioned across key AI dimensions. KeyBanc highlights agentic coding as a factor accelerating app deployment and points to evolving user interfaces as part of the broader AI-driven shift impacting the digital advertising and platform landscape.
Leadership comments from Google DeepMind have been referenced in market conversations, with CEO Demis Hassabis discussing the company’s AI advancements and asserting a competitive edge and broad capabilities in artificial intelligence. These remarks were presented as complementary to the analyst-focused narrative around AI and monetization.
For investors seeking deeper technical or valuation analysis, the research ecosystem referenced in the note includes Pro Research Reports and additional resources available through InvestingPro, which provide expanded modeling and valuation tools. The note and surrounding analyst coverage make clear there is a range of views on both near-term advertising performance and the longer-term impact of AI and cloud mix on Alphabet’s valuation.
Context and implications
KeyBanc’s move to a $360 target reflects a view that Alphabet’s combination of cash reserves, profitable margins and exposure to cloud and AI-driven advertising reinforces a higher multiple. That view is balanced in the market by differing analyst targets and an active regulatory calendar that includes the EU review of the Wiz transaction.