Investing.com – Roth/MKM has raised its price target on stock to $395.00 from $365.00 while maintaining a Buy rating following the company’s third-quarter results. The new target represents an 18.6% potential upside from the current price of $333.04, with Alphabet trading near its 52-week high of $349.

The research firm cited Alphabet’s « emphatic clean-beat » in the third quarter, with accelerating revenues across Search, Cloud, and Subscriptions segments. This performance aligns with the company’s solid 13.4% year-over-year revenue growth, reaching $385.5 billion over the last twelve months.

A key factor in the revised outlook is Alphabet’s significant capital expenditure plans, with the company projecting $175-185 billion in CapEx for 2026, compared to approximately $92 billion spent in 2025 and $52 billion in 2024. Despite these massive investments, InvestingPro data shows Alphabet maintains strong financial health with more cash than debt on its balance sheet.

Roth/MKM expressed strong belief that artificial intelligence expands the total addressable market for internet and consumer businesses, positioning Alphabet as a potential « top-three long-term winner » in the AI space.

The new price target is based on a 27.0x multiple of Alphabet’s expected 2027 GAAP earnings per share, reflecting the company’s ability to « distribute AI CapEx across several monetizable surfaces. »

In other recent news, Alphabet’s cloud segment showcased significant growth, reporting a 48% year-over-year increase, which has been a major factor in analysts revising their price targets for the company. Mizuho raised its price target to $410, citing the cloud’s impressive revenue acceleration. Similarly, Goldman Sachs adjusted its target to $400, highlighting strong momentum in Alphabet’s Search & Other segment, despite a slight deceleration in YouTube Ads revenue growth. Truist Securities also increased its price target to $385, noting the robust fourth-quarter results driven by growth in advertising, Search, and Cloud segments. Jefferies maintained its Buy rating and $400 price target, acknowledging the cloud segment’s performance, which surpassed their estimates. Additionally, Alphabet’s capital expenditure forecast for FY26 implies a substantial increase, indicating continued investment in its operations. Citizens reiterated its Market Outperform rating, emphasizing the role of artificial intelligence in enhancing Google’s business operations. These developments reflect a broad consensus among analysts on Alphabet’s strong performance and potential for future growth.

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