UBS Raises Alphabet (GOOGL) Price Target to $202, Maintains Neutral Rating

by MarketNewsData

UBS analyst Stephen Ju has increased the 12-month price target for Alphabet Inc. (GOOGL) from $192 to $202, while maintaining a Neutral rating on the stock.

🔍 Reasoning Behind the Upgrade

UBS raised its target following Alphabet’s strong Q2 2025 results, highlighting:

  • Revenue Growth: Alphabet reported 14% year-over-year revenue growth, led by Search, YouTube, and Cloud.
  • YouTube & Cloud Strength: YouTube ad revenue grew to nearly $9.8 billion, while Cloud topped $13.6 billion, showing solid enterprise demand.
  • AI Expansion: UBS acknowledged growing traction in Alphabet’s AI offerings such as Gemini and AI Overviews, which are increasingly integrated across products.
  • CapEx Growth: Despite strength in core businesses, UBS expressed caution over Alphabet’s rising capital expenditures, with full-year 2025 CapEx expected to hit $85 billion, driven by AI infrastructure buildout.
  • Valuation & Regulatory Risks: The firm remains watchful of regulatory overhangs and potential pressure on core Search margins due to rising competition and legal scrutiny.

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