TLDR
- Wolfe Research reiterated an Outperform rating on Alphabet (GOOGL) with a $460 price target, implying 34.5% upside
- The firm raised its 2027 revenue estimate by 10% to $595 billion and EPS forecast by 6% to $15.89
- Wolfe expects Google Cloud Platform revenue to grow 125% year-over-year in Q3, well above Wall Street’s 87% estimate
- Google Cloud posted 82% year-over-year revenue growth in Q2, reaching $24.8 billion with a 35.6% operating margin
- 29 Wall Street analysts give GOOGL a consensus Strong Buy, with an average price target of $422.22
Wolfe Research analyst Shweta Khajuria has named Alphabet (GOOGL) one of the firm’s top stock picks for 2027, reiterating an Outperform rating and a $460 price target. That implies roughly 34.5% upside from current levels. The stock currently trades around $342, with a P/E ratio of 17.14 and a PEG ratio of 0.15.
Despite the bullish call, GOOGL was trending lower in Thursday’s pre-market trading, down around 0.80%.
Khajuria raised her 2027 revenue estimate by 10% to $595 billion and increased her EPS forecast by 6% to $15.89. She said the firm sees “meaningful upside to consensus” and believes it is not too early to make a 2027 call.
Cloud Growth Driving the Bull Case
The core of Wolfe’s thesis is Google Cloud. Khajuria expects Google Cloud Platform revenue to grow 125% year-over-year in Q3. Wall Street’s current consensus sits at 87% for the same period. That is a wide gap.
Google Cloud had a strong Q2, with segment revenue jumping 82% year-over-year to $24.8 billion, topping market expectations of $22.5 billion. Operating income came in at $8.81 billion, pushing the cloud unit’s operating margin to 35.6%. Demand for enterprise AI services and TPUs was credited for the growth.
Khajuria ranks 866th out of 12,294 analysts tracked on TipRanks, with a 4.6-star rating and an average return per rating of 20.70%.
Recent Product Moves at Google
On the product side, Google has been active. The company announced flexible billing for its Gemini Enterprise AI agents, letting developers pay based on compute and token usage with no upfront commitment.
Google also launched Gemini 3.5 Transcribe, a speech-to-text model with a 4.0% word error rate for streaming. It handles background noise and technical terminology better than its predecessor.
Gemini Live got an update too, adding productivity features that let users manage tasks and schedules through voice commands, with integration across Google Docs, Sheets, and Drive.
Separately, Citizens maintained its Market Outperform rating on Alphabet with a $515 price target, pointing to cloud and AI model growth.
Alphabet has delivered a 65% return over the past 12 months. InvestingPro notes the stock may be slightly overvalued relative to its Fair Value estimate.
Among 29 Wall Street analysts covering the stock, 24 rate it a Buy and five rate it a Hold. The average price target stands at $422.22, implying around 23% upside from current levels.
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