While Alphabet (NASDAQ: GOOGL) was on track to approach its yearly high, it started this week on a weaker footing, and one analyst in particular appeared cautious in regard to its upside potential.
Bernstein analyst Mark Shmulik reiterated his “Market Perform” rating for the stock and gave it a price target of only $185 earlier today, a nearly 8.5% downside from the current price of $202.
Shmulik claimed Alphabet is now at a turning point thanks to its involvement with artificial intelligence (AI). Supporting his position, he drew some parallels with the early smartphone era, recalling how telecom operators underestimated the budding iOS and Android devices only to see them surpass a billion users by 2013.
In other words, the company’s long-term positioning will once again hinge on its ability to drive adoption of innovative solutions, with the upcoming Google I/O conference likely to play a role.
Shmulik stated: “Google and Apple knew that winning over developers meant winning the next platform. What can Google show developers at their annual I/O event to win AI?”
Google stock price targets
As of the time of writing, August 19, the average Google stock price target for the next 12 months sits at $217.25, implying a 6.76% upside from the current price of $202 based on the 36 aggregated ratings on market analysis platform TipRanks.
Among the most bullish projections are those by J. P. Morgan and Scotiabank, which suggest the stock might hit $232 and $240, respectively.
Conversely, the most bearish predictions, such as that by Wells Fargo, see as much as 7.59% downside potential and a price of $187, just $2 above Shmulik’s price.
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