Wall Street's sentiment on Alphabet, Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) has turned sharply positive following Tuesday's long-anticipated ruling in the DOJ search antitrust case, with the decision largely favoring the company relative to investor expectations.
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Top analysts are raising price targets and revisiting valuation multiples as the threat of a forced divestiture of Chrome or potential bans on default search deals has been taken off the table.
- Scott Devitt and Dan Ives at Wedbush reiterated an Outperform rating and increased the price target from $225 to $245.
- BofA Securities’ Justin Post reiterated a Buy rating and raised the price target from $217 to $252.
- JMP Securities' Andrew Boone maintained a Market Outperform rating and raised the price target on Alphabet from $225 to $250
- Justin Patterson of KeyBanc Capital Markets reiterated an Overweight rating and raised the price target from $230 to $265.
- Needham’s Laura Martin upgraded her estimates for 2025–2027, and increased the price target from $220 to $260.
- Rosenblatt Securities’ Barton Crockett maintained a Neutral rating and raised the price target from $191 to $224.
- Brad Erickson at RBC Capital Markets lifted Alphabet's price target from $220 to $260 and maintained an Outperform rating after the antitrust remedies.
- Eric Sheridan of Goldman Sachs reiterated a Buy rating and a $234 price target.
- Oppenheimer's Jason Helfstein reiterated an Outperform rating and increased the price target from $235 to $270.
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Wedbush: In a note titled "Government Folds Like Cheap Suit," Devitt and Ives see the DOJ's remedy decision as broadly supportive for Alphabet.
Alphabet may continue distribution payments and retain default positions, with the ruling described as removing "lingering risks."
The company is well-positioned to benefit from AI, they say. And its valuation discount to peers, like Meta, is now less warranted.
BofA Securities: The favorable antitrust remedy ruling allows Google to maintain revenue-sharing for preloads/defaults and avoids structural remedies like forced Chrome divestiture, Post explained.
It also removed a significant regulatory overhang, supporting multiple expansion and aligning valuation closer to the S&P 500 premium. The decision also allows Google to continue incentivizing partners via TAC payments and is considered highly constructive for the stock's outlook.
JMP Securities: Boone described the court's minimal penalties as a "best-case scenario."
The ruling allows Google to keep paying for distribution and keep control of Android and Chrome, while only requiring modest data sharing and syndication. The analyst highlighted reduced risk, multiple expansion potential and ongoing AI leadership for Google's business and stock.
KeyBanc: Patterson noted the DOJ remedies were better than feared and set up Alphabet for P/E multiple expansion.
KeyBanc sees Google now able to trade closer to the S&P 500's median multiple as regulatory uncertainty wanes and Cloud/AI growth accelerates. The note emphasized that Alphabet's various segments, especially Cloud, continue to support robust long-term value.
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Needham: Martin sees the court's remedies decision as much more favorable than expected for both Google and Apple, Inc. (NASDAQ:AAPL).
She noted the ruling could save Google between $5 billion and $10 billion per year in lower payout for distribution and enhance partnership prospects with Apple and Gemini.
Martin underscores Google's dominant position in digital advertising and emerging GenAI, viewing the outlook as stronger following the court's ruling.
Rosenblatt Securities: Crokett notes the ruling eliminates major near-term risks but leaves long-term competitive challenges from AI chatbots.
Crockett also remained cautious on long-term multiple expansion due to competitive uncertainties facing Google search.
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RBC Capital Markets: The analyst noted that while new syndication and data sharing requirements may help competitors, Google's core economic model and earnings compounding trajectory remain largely protected.
With the main regulatory risk removed, Erickson sees scope for multiple expansion as Alphabet is increasingly recognized as an AI leader.
Goldman Sachs: Sheridan view the remedy ruling as consistent with prior base/bull case scenarios.
He remains constructive on Google's AI-driven long-term competitive advantages and prospects for valuation relief now that one of the larger overhangs is resolved.
Oppenheimer: Helfstein’s new price target is based on 25x 2026E EPS, reflecting improved sentiment and a valuation catch-up to peers.
Price Action: Alphabet shares were climbing on heavy trading volume as investors celebrated the lighter-than-feared remedies. GOOGL stock was up %8.4 at $229.40 at the time of publication on Wednesday, according to data from Benzinga Pro.
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