Alphabet price target raised to $195 from $165 at Morgan Stanley

Morgan Stanley raised the firm’s price target on Alphabet to $195 from $165 and keeps an Overweight rating on the shares. Search and YouTube beat expectations by 3% and 6%, respectively, building confidence in faster FY24 and FY25 growth, the analyst tells investors in a post-earnings note. GenAI advancements are beginning to drive improved user engagement and advertiser return, while a dividend initiation and an additional $70B buyback authorization “create for a more attractive shareholder-return story,” the analyst added.