A fresh assessment from a Wall Street analyst has reinforced bullish sentiment around Alphabet (NASDAQ: GOOGL) stock, citing positive momentum in the Google Cloud division.
Specifically, KeyBanc analyst Justin Patterson reiterated his ‘Overweight’ rating while lifting the price target to $380 from $370. The revision implies an upside of about 11% from the stock’s last closing price of $341.
The outlook is anchored in stronger-than-expected performance from Google’s cloud business, which is increasingly viewed as underappreciated by the broader market.
Patterson noted that accelerating cloud growth, coupled with steady expansion in core search revenues, is expected to sustain double-digit growth and support higher profitability over the next several years.
A key element behind the upgraded forecast is the belief that Alphabet’s artificial intelligence (AI) initiatives are beginning to translate into tangible monetization opportunities.
These developments are seen as a major driver of future earnings, with projections pointing to earnings per share approaching $14 by 2027.
According to the analyst, the combination of AI-driven innovation and cloud momentum is also helping justify a higher valuation multiple, particularly in the mid-to-high 20s range on a forward earnings basis.
Despite broader volatility in the technology sector, the analyst maintained a positive long-term stance on Google, citing its diversified revenue streams and continued leadership in digital advertising and emerging AI applications.
Wall Street bullish on Google stock
Complementing this view is the broader Wall Street outlook on Alphabet stock, which remains bullish. A consensus rating among analysts stands at ‘Strong Buy,’ according to data tracked by TipRanks.
The 31 analysts have set an average 12-month price target of $385.97, representing a potential gain of nearly 13%. The most optimistic projection reaches $450, while the lower end of expectations stands at $330.
The upbeat outlook reflects expectations that Alphabet will continue to benefit from resilient advertising revenue, steady expansion in its cloud business, and growing contributions from artificial intelligence initiatives.
These factors are widely seen as key drivers that could support both revenue growth and margin expansion in the coming quarters.
