Jefferies Raises Alphabet Price Target to $365, Citing AI Leadership and Data Moat
Jefferies has increased Alphabet's price target from $320 to $365, maintaining a Buy rating on the stock. The firm highlights Google's "unrivaled data moat" and its seven products with over 2 billion monthly active users each as key competitive advantages. Alphabet's scale positions it to deploy generative AI across its ecosystem effectively.
Google Cloud is projected to sustain growth above 30% through 2026, while net revenue growth is expected to moderate slightly to 13% in 2026 from 15% in recent years. Operating margins are forecast to expand by 140 basis points to approximately 39%, reflecting improved profitability.
Jefferies emphasizes Alphabet's infrastructure and user base as critical assets in the intensifying AI race. The company's Gemini AI is seen as a leader in the field, leveraging its vast data resources and global reach.
