Mizuho Financial Group raised its price target for Alphabet Inc. (GOOGL) to $420 from $410. The firm maintained its Outperform rating on the stock.
Analysts cited an improved outlook for Google Cloud following a partnership with Anthropic and a new backlog analysis. Mizuho’s bull case projects Cloud revenue will reach $149 billion by 2027. This estimate significantly exceeds the current market consensus of $116 billion.
The bank expects strong incremental margins to generate an additional $18 billion in operating income by 2027. Mizuho subsequently raised its earnings per share estimates for 2026 and 2027. Analysts suggest Alphabet’s stock multiple could expand as the high-growth cloud segment contributes more to total earnings.