BofA Global Research has reiterated its "Buy" rating for Alphabet Inc. (GOOGL), raising the price objective to $225 from $210, reflecting a forward-looking valuation based on 2026 estimates. The report highlights AI competition and regulatory challenges as key factors influencing market sentiment, while potential tailwinds could arise from AI advancements and cost discipline. Despite lowering EPS estimates for 2024, 2025, and 2026 due to foreign exchange impacts, the firm remains optimistic about Alphabet's long-term growth prospects.
The report underscores the strategic importance of AI, stating, "AI competition & regulatory to drive sentiment, with potential tailwinds from AI Overviews & cost discipline." This suggests that while challenges exist, Alphabet's focus on AI could provide significant growth opportunities.
Alphabet's stock was trading at $191.40, up 0.20% as of January 14, 2025, at 9:40 AM.