Pivotal Research Lifts Alphabet (GOOGL) Target to $400 as Cloud and Cash Flow Accelerate

Core Insights - Alphabet Inc. is recognized as a significant AI stock on Wall Street, with Pivotal Research raising its price target to $400 from $350 while maintaining a Buy rating, driven by cloud momentum and free cash flow acceleration [1][2] - The search segment is highlighted as a resilient cash cow with pricing power, contributing to the growth of Google's Gemini AI and presenting opportunities to reduce costs through AI [1] - Pivotal Research has revised its revenue forecasts, projecting a 5-year revenue CAGR of 11%, EBITDA growth of over 14%, and a 26% growth in free cash flow per share [2] Financial Metrics - The target terminal EBITDA multiple in the DCF valuation has been increased from 18X to 18.5X, resulting in a Street high target of $400 [2] - Alphabet is expected to achieve solid multi-year growth in revenue, profitability, and cash generation [2] Company Overview - Alphabet Inc. is a multinational technology conglomerate that wholly owns Google and other businesses [2]