As Alphabet (NASDAQ: GOOGLE) marching on the growing battle for Artificial Intelligence (AI), Citizens analyst Andrew Boone has given his 12-month rating on Google’s share price.
On June 22, Boone reaffirmed his ‘Market Outperform’ rating with a $515 price target on Google’s share price. Boone highlighted the risks of retaining talent and the challenges associated with acquisitions, citing the recent move of Google VP of Engineering and Gemini lead Noam Shazeer to OpenAI.
He said that the departure revives the bearish case from two to three years ago. At the time, concerns were raised Letters it may lose top AI talent to its competitors, which could hamper its ability to remain at the forefront of AI development.
Despite these risks, Boone maintained a positive outlook on Google’s share price as he continued to monitor the upward trend in the AI sector. He reviewed Alphabet’s previous $2.7 billion deal to license Character.ai technology, a deal that reaffirmed the company’s commitment to strengthening its AI capabilities.
“Going back, the bear on Google from 2 to 3 years ago was that it will lose talent to OpenAI and Anthropic and will not be able to advance the development of AI. We continue to monitor the management of the authorities for those reasons,” Boone he realized.
Google pricing and performance forecasting
As a result of Boone’s coverage of Google shares, the average forecast for Alphabet stock is about $427.38, at the time of publication, according to data from TipRanks.
Year-to-date, Google stock has gained about 9.8%, trading at about $345.81 at the time of publication. As a result, the company had a market capitalization of almost $ trillion.
Similarly, Boone’s price target of $515 represents a 48.9% upside from current levels, above the analyst consensus of $427.38, which indicates a gain of 23.6%.
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