Citizens analyst Andrew Boone raised the price target on Alphabet to $385 from $340. This represents a 13.24% increase. The firm maintained its 'Market Outperform' rating.
Citizens cited accelerating search revenue as the key near-term factor for the company. The firm noted that AI Overviews and the Gemini model are driving increased search engagement. Furthermore, features like Smart Bidding Exploration are expanding Google’s advertising capabilities.
The positive outlook is supported by several medium-term catalysts expected to drive results in 2026 and 2027. These include the continued development and integration of the Gemini AI model and growth in the Cloud division. Other drivers are advancements at Waymo and the use of proprietary TPUs.