Tigress Financial raises Alphabet stock price target on AI growth
Tigress Financial Partners upgraded its price target for Alphabet Inc. (GOOGL) to $485, maintaining a Strong Buy rating. The analyst highlighted Alphabet's AI-driven growth across its Search, Cloud, and YouTube businesses. Second-quarter results showcased search momentum, expanding cloud growth, margin expansion, and new monetization opportunities.
Revenue grew by 20% over the past year, reaching $445.87 billion, while return on equity remained at 50%. The stock trades at a low PEG ratio of 0.15, indicating strong growth relative to its valuation. AI investments initially compress ROI but are expected to generate accelerating economic profits. Alphabet's scale, profitability, and diversified ecosystem support long-term returns.
Despite being overvalued, the company boasts more cash than debt, making it a focus opportunity for investors.
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