This article first appeared on GuruFocus.
Alphabet (NASDAQ:GOOGL) drew a higher price target from BMO Capital after the bank said the company remains its top way to play artificial intelligence and cloud growth.
BMO Capital analyst Brian Pitz raised its target to $410 from $400 and kept an Outperform rating on Alphabet. The firm said Alphabet’s position across the AI stack still stands out in its coverage, while search trends suggest Google’s AI Overviews may be gaining traction. Alphabet climbed about 2% after the call.
The bank also lifted its 2026 Google Cloud estimate by 5%, which now implies 44% year-over-year growth. BMO said cloud demand remains firm, with supply constraints appearing to be the main limit on faster expansion. Alphabet’s revenue growth and PEG ratio, which the firm put at 0.9, also supported its bullish view.
BMO said Alphabet’s shares have already climbed about 120% over the past year, but it still sees room for further gains. The upgrade adds to a growing list of positive calls tied to Alphabet’s search, cloud and AI momentum.
Alphabet is scheduled to release its first-quarter 2026 earnings for Q1 2026 on Wednesday, April 29, 2026, after the market closes.
