Citizens Raises Price Target#
Citizens has increased its price target for Alphabet Inc. (NASDAQ: GOOGL) from $385 to $515, while keeping a Market Outperform rating. Currently, the stock is trading at approximately $382.95, close to its 52-week high of $386.76, following an impressive 136% gain over the past year.
AI Positioning and Market Potential#
The firm attributes this optimistic outlook to Alphabet's strong position in artificial intelligence (AI). Citizens analyst Andrew Boone pointed out that Alphabet's introduction of tensor processing units in early 2026 allows the company to generate AI revenue independently from its data center limitations. This development is expected to broaden Alphabet's market reach and improve cost efficiency in AI training and application.
Growth in Cloud Business#
Citizens anticipates that Alphabet's Cloud division will continue to drive growth. The firm believes that current market estimates may not fully reflect the potential revenue from hardware sales expected in 2027 and beyond. Additionally, they expect Alphabet to unveil a new frontier model at the upcoming Google IO event later this month.
Strong Financial Performance#
In its recent first-quarter 2026 results, Alphabet reported revenue and operating income that exceeded analyst expectations by 3% and 9%, respectively. The performance of its core Search and Google Cloud services also surpassed forecasts, leading other firms like BMO Capital and UBS to raise their price targets on Alphabet's stock. These adjustments reflect confidence in Alphabet's ongoing growth, particularly in AI and cloud services, which are crucial for the company's future profitability.