synopsis

According to TheFly, JPMorgan expects continued solid search monetization and artificial intelligence innovation in an uncertain macro environment, but highlighted that management provided very limited color on the current macro environment and future revenue outlook.

Major Wall Street brokerages hiked their price targets on Google-parent Alphabet Inc. (GOOG) (GOOGL) after the tech giant posted strong first-quarter earnings.

Alphabet reported a 12% year-over-year (YoY) rise in its first-quarter (Q1) revenue to $90.23 billion, beating a Wall Street estimate of $89.15 billion, according to FinChat data. Earnings per share (EPS) stood at $2.81 compared to a Street estimate of $2.01.

According to TheFly, JPMorgan raised its price target on Alphabet to $195 from $180 and kept an ‘Overweight’ rating on the shares.

The firm anticipates continued solid search monetization and artificial intelligence (AI) innovation in an uncertain macro environment. However, it also highlighted that there was very limited color from management on the current macro environment and future revenue outlook.

Meanwhile, Bank of America (BofA) raised its price target on the stock to $200 from $185 and kept a ‘Buy’ rating on the shares.

According to a CNBC report, BofA analyst Justin Post said that another quarter of strong results supports the firm’s thesis that Alphabet can be a net AI beneficiary, expanding the search opportunity and opening new business models.

“While we acknowledge business model transition risks and competitive overhangs, we believe Street may be underappreciating monetization ramp possible in AI Overviews, and from AI-driven Cloud demand,” he said.

Goldman Sachs also upped its price target on Alphabet to $220 from $205, according to the CNBC report. Analyst Eric Sheridan stated that Goldman continues to view Alphabet as well-positioned against both the current (a mixture of desktop and mobile utility) and potential future (AI/ML, personalization, and lowered friction to applications) computing landscapes.

Other firms, such as Piper Sandler and Bernstein, have also raised their price targets on the stock to $195 and $185, respectively.

Alphabet Class A and Class C shares were traded over 4% higher in Friday’s pre-market session.

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