Citizens Analyst Predicts 52.46% Upside for Alphabet Stock by Next Year

A Wall Street analyst at Citizens has reaffirmed his 'market outperform' rating for Alphabet's (GOOGL) stock and set a price target of $515 for the next 12 months. This prediction signals a potential 52.46% upside from the current market value of $337.79, as per Monday's closing prices.

The analyst, Andrew Boone, bases his expectations on Alphabet's strong vertical integration in the AI space. He notes that the company has demonstrated its capabilities in this area through its management of entire product ecosystems, including cloud data centers and core consumer platforms like Google Search and YouTube.

Boone also points to the early stages of vertical integration in the AI industry, citing Alphabet's recent exploration of acquiring MatX, an AI-chip company founded by former TPU engineers. This acquisition was ultimately abandoned, but Boone believes it shows Alphabet's commitment to expanding its presence in the space.