cantor fitzgerald maintains neutral rating on alphabet stock
Investing.com
Published Jun 04, 2025 07:49AM ET
On Wednesday, Cantor Fitzgerald analysts maintained a Neutral rating on Alphabet (NASDAQ:GOOGL) stock, keeping the price target steady at $171.00. This aligns with broader market sentiment, as InvestingPro data shows analyst targets ranging from $160 to $250, with 19 analysts recently revising earnings estimates downward. The analysts expressed concerns over potential impacts on Alphabet's future earnings if it loses pre-installation agreements with Samsung (KS:005930).
According to the analysts, Alphabet's fiscal year 2026 estimated earnings before interest and taxes (EBIT) could be affected by approximately 3-5% if there is a 40-50% reduction in Samsung Search share due to competition from Perplexity.
The analysts also noted that Alphabet might face ongoing query declines on a key search access point. This could happen if the company is unable to deliver AI tools over time, even if users return to the core search experience.
Alphabet, which operates the largest search engine globally, relies heavily on partnerships with device manufacturers like Samsung to maintain its market position.
The reiteration of the Neutral rating reflects the analysts' cautious outlook on Alphabet's ability to navigate these potential challenges while maintaining its current valuation.
In other recent news, Alphabet has been the focus of several significant developments. Truist Securities has reiterated a Buy rating on Alphabet stock, with a price target of $200. The analysts emphasized Alphabet's diverse portfolio, including YouTube, Cloud, and Waymo, and suggested that the stock might be undervalued. Concurrently, BofA Securities also maintained a Buy rating with the same price target, amid reports of Samsung's potential partnership with Perplexity AI. Samsung is reportedly considering integrating Perplexity's AI technology into its devices, which could affect Alphabet's search revenue, though BofA notes the impact might be limited due to the small market share of Samsung's browser.
Additionally, Alphabet is facing legal challenges from the Department of Justice, which has filed an antitrust lawsuit seeking the possible forced sale of some of its businesses. In Europe, a German cabinet member has proposed a 10% tax on major internet platforms, including Alphabet, which could increase trade tensions between Germany and the United States. These developments come as global trade tensions and tariff uncertainties have caused fluctuations in the stock market, affecting Alphabet and other tech giants known as the "Magnificent Seven." Despite these challenges, analysts from firms like Truist and BofA continue to see strong investment opportunities in Alphabet's diverse business segments.
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