Analysts Lift Alphabet Targets to $395 and $370, Cloud Backlog Up 55%
J.P. Morgan reiterated a Buy rating on Alphabet with a $395 price target implying 22% upside, while KeyBanc Capital Markets raised its target to $370 from $360 and kept an Overweight rating. Google Cloud backlog jumped 55% quarter-over-quarter in Q4 and its Gemini AI assistant reached 750 million MAUs.
1. Analyst Reaffirmations
On February 9, J.P. Morgan’s Doug Anmuth reiterated a Buy rating on Alphabet with a $395 price target, reflecting roughly 22% upside from its current share price. Three days earlier, KeyBanc Capital Markets lifted its target to $370 from $360 and maintained an Overweight rating.
2. Investment in Growth
KeyBanc highlighted Alphabet’s increased capital expenditure to support expansion across Google Services and Google Cloud, noting that scale concerns are outweighed by segment robustness. The firm described the stock’s upside as driven primarily by earnings growth rather than multiple expansion.
3. Segment Performance and Outlook
Search revenue growth accelerated through 2025, while Q4 cloud backlog surged 55% quarter-over-quarter. Alphabet’s Gemini AI assistant achieved 750 million monthly active users, underscoring accelerating adoption of its generative AI offerings.