Alphabet is this analyst's top pick in Big Tech. Why he sees 27% more upside for Google.

Evercore ISI analyst Mark Mahaney has named Alphabet his top large-cap stock pick, raising his price target to $300 from $240, implying 27% upside. This upgrade reflects Google's undiminished strength in monetizing commercial search queries, despite AI developments, and the recent positive resolution of its antitrust case, which saw the stock jump 8% as Chrome divestiture was avoided.

Analysis

A recent favorable antitrust ruling, which averted the divestiture of Google's Chrome browser, has removed a significant overhang for Alphabet Inc. (GOOGL, GOOG), catalyzing an 8% stock price increase. Building on this momentum and the stock's 25% year-to-date gain, Evercore ISI analyst Mark Mahaney has reiterated an outperform rating and designated Alphabet as his top large-cap pick. The analyst's conviction is underpinned by a substantial price target increase to $300 from $240, implying a potential 27% upside. The core of this bullish thesis rests on the assessment that Google's dominant position in highly monetizable commercial search remains fundamentally unshaken by the advent of artificial intelligence, suggesting a durable and resilient business model that can propel the stock further into record territory.

Key Decisions for Investors

• Investors may view the resolution of the antitrust uncertainty as a significant de-risking event, potentially warranting a re-evaluation of Alphabet's weighting within a large-cap tech portfolio.
• The analyst's thesis hinges on the resilience of Google's search monetization; therefore, monitoring quarterly reports for search revenue growth and margins will be critical to validate this outlook.
• Given the 27% implied upside to the new $300 price target, long-term investors could consider the current levels an attractive entry or accumulation point, especially with a major legal overhang now removed.