Analyst Sees 20%+ Search Growth, Sets $385 Target for Alphabet
Citizens analyst Andrew Boone reaffirmed a Market Outperform rating on Alphabet with a $385 price target, noting AI-driven search expands the total addressable market by inferring commercial intent. The firm forecasts search revenue growth in high teens to over 20% as retail media budgets shift to search.
1. Analyst Reaffirms Outperform Rating
Citizens analyst Andrew Boone reiterated a Market Outperform rating on Alphabet and maintained a $385 price target, highlighting confidence in the company's AI capabilities to drive future growth.
2. AI Expands Search Total Addressable Market
The firm argues that AI-driven search enhancements allow Alphabet to address a broader range of query types and infer commercial intent from informational searches, effectively expanding the total addressable market.
3. Retail Media Budgets Shift to Search
As agentic search matures, the firm expects retail media budgets to increasingly flow into Search, boosting ad spend and strengthening Alphabet's competitive position in digital advertising.
4. Strong Growth Forecast for Search Revenue
Analysts project search revenue growth in the high teens, potentially exceeding 20%, driven by AI-powered targeting improvements and increased advertiser demand.