Although Alphabet Inc.'s (NASDAQ:GOOGL) stock is the second-best-performing among the Magnificent Seven so far this year, there is still room for further upside, according to JPMorgan.
The Alphabet Analyst: Analyst Doug Anmuth maintained an Overweight rating, while raising the price target from $260 to $300.
The Alphabet Thesis: While the stock has rallied 37% year to date, there is still "a lot to like about Google," Anmuth said in the note.
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He added that the shares could rise "meaningfully higher" from the current levels.
Google is navigating the AI search transition well and could continue generating double-digit Search growth, the analyst stated. He further commented that YouTube ad growth may accelerate due to market share gains and better leveraging AI.
"Google Cloud growth should also accelerate on its AI positioning and TPU infrastructure, including recent deals with Anthropic, Meta Platforms (NASDAQ:META), and OpenAI," Anmuth wrote.
GOOGL Price Action: Alphabet shares were up 0.40% at $270.35 during premarket trading on Tuesday. The stock is trading at a new 52-week high, according to Benzinga Pro data.
Alphabet’s robust market capitalization of $3.27 trillion underscores its dominance in the interactive media and services industry, while its P/E ratio of 28.7 suggests a premium valuation relative to historical averages, reflecting investor confidence in its growth prospects.
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