Alphabet Inc (NASDAQ:GOOG) shares are climbing Monday. KeyBanc trimmed its price target, but kept its Overweight rating. Here’s what you should know.
- Alphabet stock is holding steady today. What’s the outlook for GOOG shares?
KeyBanc Trims Alphabet Price Target
KeyBanc analyst Justin Patterson held Alphabet at Overweight while lowering the price target to $410 from $435.
Patterson values the stock at 23.3 times 2028 earnings. The lower target stems from reduced earnings estimates for Google Services and a lower multiple on the profit TPUs add to Google Cloud.
Patterson remained bullish over the long term. The firm likes Alphabet’s standing in AI and expects Waymo to turn into a meaningful revenue source eventually.
For now, much of the good news already appears in the share price, Patterson says, citing Cloud and TPU momentum. The release of Gemini 4 Argon also supports Patterson’s view that Search growth and Services operating margin should come in no worse than in line, and possibly stronger.
Valuation is the risk, though. Patterson considers Wall Street’s forecasts too aggressive. Shares could trade sideways until analysts reset those forecasts, he said.
Other Analysts Weigh In On Alphabet
Other analyst firms have also updated their views on Alphabet in recent days:
- UBS stayed at Neutral on Wednesday and edged its target up to $380 from $379.
- Needham reiterated a Buy rating on Oct. 8 and held its target at $450.
Benzinga’s consensus rating on Alphabet is Buy, with an average price target of $428.73. Published targets span $350 to $515.
GOOG Shares Are Moving Higher
GOOG Price Action: Alphabet shares were up 1.29% at $341.23 at the time of publication on Monday, according to Benzinga Pro.
Alphabet crossed above its 200-day moving average of $339.26 on Monday, improving the longer-term chart picture. Even so, the stock remained below its 20-day average ($342.42) and 50-day average ($341.20), leaving nearby overhead levels in play.
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