Bank of America has reiterated its 'Buy' rating on Alphabet, setting a target price of $430, which suggests a 10.9% upside from its current price of $387.66. Despite a 2% drop in Alphabet's stock following its recent I/O developer conference, analysts Justin Post and Nitin Bansal highlighted Google's advancements in AI and Search as key drivers of future growth. They noted significant user engagement metrics, including 2.5 billion users for AI Overviews and 1 billion users for AI Mode, which doubles quarterly. The analysts believe these innovations position Google as a leader in AI-native experiences, reducing competitive risks. The $430 target is based on a 28-times multiple of projected 2027 earnings, factoring in Google's cash reserves.
Bank of America Reaffirms 'Buy' Rating on Alphabet with $430 Target
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