On January 9, Scotiabank analyst Nat Schindler raised the price target for Alphabet Inc. (NASDAQ:GOOGL) to $375.00 from $336.00. The analyst maintained a Sector Outperform rating on the stock.
Schindler cited robust third-quarter results from Alphabet, noting acceleration across its Search, YouTube, and Cloud business segments. He expressed particular confidence in potential upside within the Cloud segment, specifically regarding operating margins.
"OUR TAKE: Positive. Google is up ~64% over the TTM, and every decision they make seems to be the correct one," Schindler stated.
While acknowledging that Google had a relatively slower start in artificial intelligence development compared to some competitors, the firm's analysis positions Google as a structural winner among hyperscalers. "Ultimately, while Google got a (relatively) slower start than competitors within the 'AI Wars', we see Google as the structural winner within the hyperscalers. There may be some noise within D&A but Google stock should outperform, given how the name stands to benefit from AI monetization," Schindler said in the report.
The firm remains confident in continued outperformance for GOOGL, attributing this outlook to AI tailwinds. Alphabet Inc. is the American multinational technology conglomerate holding company that wholly owns Google.