By Alex Kozul-Wright
Alphabet stock has been on a tear recently but the market is still under-appreciating Google's cloud unit growth, according to KeyBanc analysts.
KeyBanc raised their price target on Alphabet to $380 from $370 on Sunday, as lead analyst Justin Patterson said the consensus was underestimating the "Google Cloud ramp." That implies 12% upside to Monday's early price.
Google Cloud offers computing services which allow users to store and analyze data on the internet. Other cloud infrastructure providers include Microsoft, Amazon.com and Oracle.
Patterson said that KeyBanc was raising its 2026 and 2027 revenue estimates by 3% and 5%, respectively. "This largely reflects more optimistic Google Cloud estimates," noting that their forecast for $91.8 billion in 2026 revenue from the cloud unit was 8% higher than the consensus view of $85.3 billion.
The shares have risen 19% in April, through Friday's close, but pointed less than 1% down in early trading Monday. KeyBanc has an Overweight rating on the stock.
In the near term, Patterson noted that his gross revenue estimate for Alphabet's first quarter earnings -- out April 29 -- was $107.7 billion, above Wall Street's consensus forecast of $106.8 billion.
Elsewhere, Patterson said that "[Google] search remains a low-double-digit grower," and that KeyBanc's 2026 estimate for capital expenditure, at $182.8 billion, was at the higher end of Alphabet's guidance of $175 billion-to-$185 billion.
Write to Alex Kozul-Wright at alexander.kozul-wright@barrons.com
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April 20, 2026 09:39 ET (13:39 GMT)
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