Redburn-Atlantic analysts hiked their price target for Alphabet (NASDAQ:GOOGL) to $170 from $165, while reiterating their Buy rating on the stock. The analysts discussed the current market sentiment towards Alphabet, noting that its forward price-to-earnings ratio, now parallel to the S&P average, suggests a downturn in confidence regarding Google Search's competitive standing and its future growth trajectory.

Despite this, the analysts argued that Google Search is structurally in a much stronger position than widely acknowledged and anticipates potential for exceeding current market expectations in Search, Cloud, and earnings per share.

As a result, the analysts adjusted forecasts upwards and revised the year-end 2024 price target to $170, which implies a 21x forward earnings multiple for fiscal year 2025.