KeyBanc Boosts Alphabet (GOOGL) PT Post DOJ Ruling

Alphabet Inc. (NASDAQ:GOOGL) is one of the AI Stocks to Watch Out For in 2025. On September 3, KeyBanc analyst Justin Patterson raised the price target on the stock to $265.00 (from $230.00) while maintaining an Overweight rating.

The rating affirmation follows a US federal judge ruling that rejected prosecutors’ bid to make Google sell off its popular Chrome browser and Android operating system.

Even though Google must now share data with its competitors, the DOJ ruling has been better than what was anticipated, which has boosted investor confidence.

Keybanc noted that the DOJ ruling has been better than feared, implying that Alphabet shares trade at least in line with the S&P 500. Now that competitive prospects in AI have improved and Google Cloud is experiencing rapid growth, investors will likely return to look at underlying asset value.

“The DOJ ruling came in better than feared, and we believe this acts as a clearing event for Alphabet shares to trade at least in line with the S&P 500. Given improved competitive prospects in AI and Google Cloud’s rapid growth, our view is investors will return to look at underlying asset value and whether the discount on Google Services makes sense. With our math suggesting these assets are trading at a ~15x 2027E P/E (based on after-hours prices), we see further room for share price appreciation ahead. We raise our PT to $265 (21x 2027E P/E) and maintain our Overweight rating.”

Alphabet Inc. (NASDAQ:GOOGL) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses.

While we acknowledge the potential of GOOGL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.