Citizens has reiterated its Market Outperform rating on Alphabet Inc. (NASDAQ:GOOGL) and kept a $385.00 price target on the shares. The firm notes that Alphabet, with a market capitalization cited at $3.7 trillion, currently trades at a price-to-earnings ratio of 28.61 — a valuation the firm considers reasonable in light of the companys expected growth trajectory.
In commentary accompanying the rating, analyst Andrew Boone emphasized the role of artificial intelligence in enlarging the total addressable market for search. Boone argued that AI capabilities enable search to handle a wider array of query types and to infer commercial intent from information-seeking questions, potentially turning previously non-commercial queries into monetizable interactions.
Citizens additionally pointed to a possible reallocation of retail media budgets toward search as agentic search applications mature. The firms view is that these trends could support sustained top-line momentum: Citizens said it expects Googles search business to maintain growth in the teens and noted the company could, under certain conditions described by the firm, achieve growth of 20% or more.
Alongside its rating commentary, the update summarized several strategic and regulatory developments for Alphabet. The company has raised $20 billion through a seven-part bond offering to finance its expanding investment in artificial intelligence infrastructure. Citizens framed that transaction as reflective of a broader shift among large technology companies from relying solely on internal cash flows toward tapping capital markets to fund emerging technology investments.
On the acquisition front, Alphabet secured unconditional approval from European Union regulators for its $32 billion purchase of cybersecurity firm Wiz. The European Commission concluded that the deal would not create competition concerns, clearing Alphabets largest acquisition to date and potentially augmenting its position in cybersecurity and cloud services.
At the same time, Citizens note of Alphabets opportunity set was tempered by regulatory risk: the company is facing a fresh European Union antitrust probe focused on allegations of inflated advertising prices in its search ad auctions. The European Commission has expressed specific concerns regarding the pricing mechanics of Googles ad auction processes.
Finally, the firm referenced product developments tied to Alphabets AI stack. Google has rolled out notable upgrades to its Gemini 3 Deep Think AI system, which are now available to Google AI Ultra subscribers and select researchers via the Gemini app and API. Citizens views these capabilities as part of Alphabets ongoing efforts to strengthen its technological platform.
Taken together, Citizens reiteration of a Market Outperform rating rests on a combination of AI-driven market expansion for search, continued product advancement, and strategic financing activity, balanced against active regulatory scrutiny in Europe.