-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our 12-month target to $410 from $370 on a P/E of about 29x our 2027 EPS view, above peers/historical to reflect good visibility for AI monetization/cloud growth. After Q1 beat, we lift our 2026 EPS view to $14.25 (benefits from one-time asset gains) from $11.30 and 2027's to $14.09 from $13.20. We see Google Cloud well-positioned, with the near-doubling of backlog (revenue +63% in Q1) providing high revenue visibility and validating its massive infrastructure investments. We also think AI integration across Search is driving an expansionary moment with queries at all-time highs, supporting our view that AI enhances Google's core advertising franchise. The 19% Search revenue growth in Q1, coupled with new monetization opportunities through AI Mode, Direct Offers, and the Universal Commerce Protocol, suggests pricing power and ad upside. We also think GOOGL's full-stack AI strategy offers upside, from proprietary TPUs (getting into the hardware business) to Gemini models to enterprise applications.