UBS: Raised Alphabet's target price to $186, raised earnings per share estimate.

UBS released a research report stating that Alphabet's first quarter revenue from search business in the fiscal year 2025 ended March increased by 10% year-on-year, exceeding investors' expectations of 8% and market expectations of 9%. In addition, the company maintained its $75 billion capital spending guidance, which could be seen as a positive signal for the revenue environment. UBS stated that although Alphabet's depreciation and amortization, as well as YouTube or content acquisition costs, met expectations, sales costs were much lower than expected. The bank raised its earnings per share forecast for Alphabet for the fiscal years 2026 and 2027 by about 7%, raising the target price from $173 to $186, and maintaining a "neutral" rating. UBS also continues to believe that Alphabet's P/E trading multiples will continue to be under pressure due to unresolved regulatory issues and the prospect of losing market share in its most important business markets.