BMO Capital analysts raised Alphabet (NASDAQ:GOOG) price target to $230, up from $217, while reaffirming an Outperform rating on the stock. The revised outlook reflects heightened optimism surrounding key revenue drivers across Alphabet’s core businesses, including Search, Google Cloud Platform (GCP), and YouTube.
According to the analysts, recent channel insights indicate Alphabet’s advertising and cloud services are poised for stronger growth. Performance Max (PMax) is delivering enhanced return on ad spend for Search advertisers, leveraging data-driven optimizations. Meanwhile, the Gemini platform is expanding Alphabet’s addressable market with its ability to process more complex search queries effectively.
On the cloud front, GCP continues to gain traction, bolstered by innovations in middle-layer technologies like Gemini and Vertex AI. These advancements are enhancing efficiency and expanding the platform’s appeal to enterprise clients.
YouTube is also experiencing momentum, particularly in its advertising initiatives. The introduction of lower-funnel tools, such as QR codes integrated with video ads, is resonating strongly with advertisers looking for more direct consumer engagement.
With robust developments across these business lines, Alphabet is well-positioned to sustain growth, justifying the increased price target.