Morgan Stanley has increased its price target for Alphabet (NASDAQ:GOOGL) to $205 from $185, citing stronger innovation cycles and improved corporate transparency. The investment firm maintained its “Overweight” rating on the stock, highlighting the growth in generative AI engagement and its monetization potential as key positive drivers. Analysts are also monitoring whether the tech giant can guide investor sentiment toward achieving an earnings per share (EPS) of over $10 by 2026.
While the U.S. Department of Justice’s ongoing search-related investigation may extend into late 2025, Morgan Stanley noted that Alphabet’s core search profitability and product momentum remain central to its long-term investment thesis.
Upcoming post-earnings updates, expected by next week, could further influence market confidence. The firm also pointed to potential outcomes from the DOJ case, suggesting a resolution could clear the way for a broader Gemini AI partnership with Apple.
In a separate development, Alphabet recently received preliminary court approval to settle a shareholder derivative lawsuit without any admission of wrongdoing, according to a recent SEC filing.
The updated target from Morgan Stanley aligns with broader market sentiment. The average one-year price target for Alphabet among 51 analysts is $203.34, with estimates ranging from a high of $250.00 to a low of $160.00.
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