Alphabet (GOOGL) PT Raised to $306 at UBS

UBS analyst Stephen Ju raised the price target on Alphabet (NASDAQ: GOOGL) to $306.00 (from $255.00) while maintaining a Neutral rating.

The analyst commented, "For starters, Google beat across all its major franchises - Search, YouTube and Cloud. The big learning for today was on Cloud, where a disclosed backlog of $155B (50-55% likely to be turned into revenue in the next 2 years) sets Google up to be a substantially larger company than investors had expected. For OpEx/CapEx, we note some of the aforementioned revenue upside is offset by the higher D&A from a $6B-$8B increase to 2025 CapEx guide (and resulting higher 2026), but given that the increase was entirely linked to upcoming cloud revenues we see investors asking for no incremental ROIC proof points. Net/net, this result demonstrates that Google is driving consequential expansion to both its ad business and cloud business due to GenAI and therefore this company starts to become a frontrunner in our space in terms of proving out ROIC on this new investment area. Our EPS moves up by ~6% / ~5% for 2026E / 2027E, driving our price target to $306 from $255."

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