Stifel has revised its price target for Alphabet Inc. (NASDAQ: GOOGL) upward to $346 from a previous $333, preserving its Buy recommendation on the shares. This updated valuation marks a modest gain relative to Alphabet's recent trading price of $331.19, which itself is just shy of its peak of $340.49 over the past 52 weeks.
The investment firm's bullish stance is anchored in the expectation that Alphabet will surpass Wall Street consensus estimates with its fourth-quarter advertising revenues from both Search and YouTube segments. Stifel also comments that analyst forecasts concerning the cloud business appear justified and reasonable as the company readies to report its quarterly results on February 4. With the earnings announcement approximately 12 days away, investors might prepare themselves for potential market movements following the report.
Despite a notable stock advance prompted by the recent launch of Alphabet's Gemini AI technology, Stifel suggests that the equity still holds room to appreciate post-earnings. The firm identifies Alphabet as a prominent pick for 2026 within its portfolio. According to InvestingPro data, Alphabet currently trades with a price-to-earnings ratio of 32.6 and carries a price-earnings-to-growth (PEG) ratio of 0.93. This latter figure points toward a valuation that is relatively aligned with its forecasted growth trajectory.
Nonetheless, Stifel advises that the current investment climate surrounding Alphabet is comparatively more challenging, owing to the gains realized in recent months. An unpredictable factor noted by the firm is competitive pressure from OpenAI, which could momentarily stall Alphabet's upward momentum.
The $346 price target reflects a 3.9% increase from Stifel's prior valuation. Complementing this perspective, Truist Securities has reiterated a Buy stance with expectations of over 15% growth in revenues, in line with consensus projections. Truist foresees sustained strength in search advertising, buoyed by healthy query volume and robust cost-per-click metrics, even amid competition from emerging generative AI technologies.
Additionally, RBC Capital has elevated its price target on Alphabet to $375 and maintains an Outperform rating. The firm points to the full integration of AI-optimized advertising across platforms as a growth catalyst. Meanwhile, Cantor Fitzgerald retains a Neutral rating while Alphabet awaits outcome of regulatory scrutiny regarding its ambitious $32 billion acquisition of cloud security company Wiz. The European Union anticipates delivering a decision on the transaction's antitrust review by February 10, 2026.
In a related vein of semiconductor industry developments, RBC Capital initiated coverage on Astera Labs with an Outperform rating and a price objective of $225, citing the firm's solid fundamentals in semiconductor connectivity solutions. On the AI frontier, Google DeepMind CEO Demis Hassabis has emphasized the company's advances, underscoring its competitive advantage through comprehensive capabilities in artificial intelligence technologies.
This coverage underscores the multifaceted factors investors need to consider in evaluating Alphabet's near-term outlook, balancing robust revenue growth against competitive and regulatory complexities in the technology sector.