Raymond James believes Alphabet’s investments in artificial intelligence will support further upside from here. The company upgraded Titan’s rating on Magnificent Seven from Outperform to Strong Buy. Analyst Josh Beck also raised his price target to $400 from $350, suggesting a potential upside of 22% from Wednesday’s closing price. Alphabet’s stock price has increased 64% in the past 12 months. GOOG 1Y Mountain GOOG 1Y Charts The company’s 2026 and 2027 forecasts have been revised significantly upwards due to the reassessment of Google Search and Cloud, Beck wrote. He noted that estimates for Raymond James are currently at the highest level for 2027 earnings. “We believe GOOG is likely in a cycle of improvement and upward revision of its AI stack narrative, potentially producing one of the highest quality top-line AI acceleration stories in the public universe,” the analyst said. “Our basic assumption for 2026 is that the AI stack narrative and fundamental revisions, rather than mean-reversion trading (i.e., buying down and selling multiples up), will drive major megacap internet performance.” Beck’s $400 price target is based on a 29x 2027 price-to-earnings ratio, which is above Alphabet’s historical average. The company’s stock currently trades at about 28.8 times forward earnings, according to FactSet data. This corresponds to the 2021 peak of around 31. This premium reflects broader return acceleration across the company’s AI investments, which are now “moving into high gear.” Analysts generally like stocks. LSEG data shows 51 out of 60.
