Truist Raises Price Targets for Amazon and Alphabet on Cloud Business Strength

Deep News05-29 20:21

Truist stated that as the cloud businesses of Amazon.com and Alphabet grow and exceed Wall Street expectations, their stock prices are poised to rise.

The bank increased its price target for Amazon.com from $310 to $320 per share, implying a 17% upside from Thursday's closing price.

Truist also raised its price target for Alphabet from $415 to $430 per share, representing a 10% premium over Thursday's close. The firm maintained a "Buy" rating on both stocks.

Analyst Youssef Squali said in a report to clients on Friday, "Looking at the backlog as of March 31 plus recent deals, consensus revenue estimates appear too low. Ultimately, both companies should grow faster for longer, but capital expenditures will also be higher. However, the risk associated with these investments is diminishing, given the triple-digit growth in remaining performance obligations."

Truist anticipates that Google Cloud's revenue growth will accelerate from 63% in the first quarter to around 80% by the end of this year. In contrast, Wall Street expects the company's revenue growth to slow.

The analyst also noted that Wall Street is underestimating the capital expenditure and revenue growth for Amazon Web Services through the 2027 fiscal year.

Shares of Alphabet, Google's parent company, have risen 25% since the beginning of the year.

Amazon.com stock has gained 19% in 2026.

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