Oppenheimer analysts raised their worth targets for Alphabet (NASDAQ:) and Meta Platforms (NASDAQ:) in separate notes Monday primarily based on generative synthetic intelligence tailwinds.

The agency lifted its GOOGL worth goal to $185 from $172, sustaining an Outperform ranking on the inventory. Analysts advised traders that following its client survey on Search/AI consumer conduct, they assume Alphabet shares stay engaging forward of 1Q outcomes.

Moreover, the agency pointed to the corporate’s potential Gemini replace on the Might Google I/O occasion, the low cost to NASDAQ, and combined/bearish investor sentiment as different elements driving its bull thesis.

“Our survey signifies search stays the perfect at satisfying client use instances, with genAI a complement vs. substitute to go looking, and survey additionally
signifies Google’s search dominance would proceed if authorities ended AAPL exclusivity settlement,” mentioned Oppenheimer.

As well as, analysts mentioned the outcomes counsel a possible GOOG/AAPL Gemini integration would meaningfully improve the variety of searches, “with 53% of respondents indicating they might use voice search greater than textual content search in the present day.”

The META worth goal was raised to $585 from $525, with analysts stating that they’re elevating estimates for the Outperform-rated inventory to “incorporate AI tailwinds and historic seasonality.

AI is “driving income upside,” said Oppenheimer. “Whereas historic seasonality nonetheless suggests upside to 2H24, our mannequin now implies 337bps of share positive aspects vs. 6-year common of 305bps (ex ’21-’22 IDFA affect), indicating vital positive aspects built-in.”