Jeffries analysts lifted their 12-month target price on shares of Alphabet Inc (NASDAQ:GOOG) to $285 per share from $230 to reflect the search giant’s recent rapid pace of artificial intelligence (AI) improvement.
In a note to clients on Thursday, the analysts see “untapped potential” for Google Gemini, believing Google can turn search into the “ultimate decision engine.”
They added that Circle to Search and Google Lens further expand the search experience with multi-modality across browsers such as Chrome and Safari.
“We believe AI is not a zero-sum game where multiple agents will thrive, and see Google being a leading copilot for consumers, especially if it can seamlessly integrate search, AI Overviews, and Gemini/AI Mode into a single interface,” the analysts wrote.
The Jeffries team ran the same 10 prompts across Google Gemini, OpenAI ChatGPT, and Perplexity, and while they concluded that ChatGPT won overall, they found Gemini to have the best image generation.
The analysts believe Google could transition its leadership in the search world to the AI world.
Alphabet Class A shares slipped 0.3% to $244.16 in afternoon trading on Thursday.