We lift our 12-month target to $230 from $220, on a higher revised P/E of 20.3x our 2027 EPS view of $11.35, near its three-year historical forward average. We up our target to reflect recent events and our belief that the court remedies from the pending Google monopoly search case, expected any day now, will avoid a worst-case scenario (no matter the outcome it will be appealed). A report by The Information cites META has signed a six-year +$10B deal to use GOOGL's cloud-computing services for its AI infrastructure. Also, a Bloomberg report says AAPL plans to use Gemini to power an enhanced Siri next year. We believe GOOGL's success to sign larger scale deals (e.g., META, OpenAI) adds credibility to its cloud business (lags MSFT/AWS in size) and will help sustain growth in the high-20s/low-30s range through at least 2026. Although it wouldn't be a surprise, we think a more expansive agreement between AAPL and GOOGL for AI services helps both parties and further validates GOOGL's AI initiatives/spending.

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