Alphabet (GOOGL) Retains Buy Rating as Analysts Lift PT to $375 on Accelerating AI and Cloud Demand

Core Viewpoint - Guggenheim has raised its price target for Alphabet Inc. to $375.00 from $330.00, maintaining a "Buy" rating, driven by optimism around AI-led monetization and cloud growth through 2026 [1][2]. Group 1: Financial Outlook - Analysts expect Alphabet to outperform consensus estimates, with potential for relative multiple expansion due to AI-driven business changes [2]. - Guggenheim has increased its revenue and profit estimates for GOOGL for 2026 and 2027, citing upward revisions in Google Cloud segment revenue and margin expansion [3]. Group 2: Key Developments - Three main factors support the bullish outlook for Google: strong cloud backlog growth due to rising enterprise AI demand, YouTube's leading position in streaming viewership, and the emergence of Google Gemini as a prominent AI platform [2]. - Guggenheim suggests that the market may be underestimating Google's revenue potential, with a bull case indicating a $40 billion underappreciation in run-rate revenue based on cloud backlog growth [3].