KeyBanc Capital Markets on Friday raised its price objective for Alphabet (GOOGL) to $370.00, up from $360.00, while maintaining an Overweight recommendation on the company. The new target remains under the highest analyst projection of $432, according to InvestingPro data, and trades against a current share price of $323.90 and a reported price-to-earnings ratio of 30.8.
The firm pointed to sizable increases in Alphabet's capital expenditures, which KeyBanc said are being directed at supporting growth in both Google Services and Google Cloud. While the scale of those investments has drawn scrutiny, KeyBanc also highlighted strong operating performance across the companys segments, an observation that aligns with Alphabets 15.1% revenue growth over the most recent twelve months, lifting trailing revenues to $402.8 billion.
KeyBanc's analysis singled out several operational indicators. Search, the companys core advertising engine, showed acceleration through 2025, and the Cloud business reported a roughly 55% quarter-over-quarter increase in backlog in the fourth quarter. The firm also emphasized the expanding reach of Gemini, Alphabets AI assistant, which it said now serves more than 750 million monthly active users. Additional financial context from InvestingPro noted that Alphabet carries more cash than debt on its balance sheet.
In its modeling, KeyBanc trimmed its earnings-per-share forecasts for Alphabet for 2026 and 2027. Despite those lower EPS estimates, the firm raised its price target because it is projecting faster Cloud growth and adjusted its sum-of-the-parts valuation accordingly. KeyBanc characterized the investment case as "more of a revisions than multiple expansion story," indicating the firm expects future share appreciation to come primarily from earnings improvements rather than an enlargement of valuation multiples.
Alphabet's fourth-quarter results have prompted a range of analyst reactions and target updates across the sell-side. Piper Sandler elevated its target to $395, citing 18% revenue growth and what it described as strong operational execution, with EBITDA outperforming forecasts by about 2%.
BMO Capital raised its target to $400, highlighting a 3% beat on Search revenue and an 8% beat on Google Cloud that together produced roughly a 2% revenue upside. JPMorgan likewise set a $395 target, pointing to accelerating growth in Search and Cloud, with Search revenue up 17% and Cloud revenue increasing 48%.
Other firms took different views: DA Davidson adjusted its target to $310, noting the marked acceleration in Google Cloud that supported the company's earnings, while Cantor Fitzgerald kept a $370 target and reiterated an Overweight rating, observing that Alphabets revenues and EBIT outpaced Street estimates by 2% and 3%, respectively, which the firm attributed to increased usage from AI-enabled experiences.
Taken together, the analyst moves reflect a market reassessment of Alphabet's near-term revenue drivers, particularly Cloud and AI-related engagement, even as some models incorporate lower medium-term EPS assumptions. The range of targets - from $310 to $400 - underscores differing views on how quickly Cloud growth and AI adoption will translate into sustained profit expansion.