Piper Sandler cuts Alphabet price target to $345 on weak search revenue

Piper Sandler lowered its price target for Alphabet (NASDAQ:GOOGL) to $345 from $400 on Tuesday, while maintaining an Overweight rating, following weaker-than-expected search advertising revenue growth. The firm cited search revenue growth of 12%, below consensus estimates of 15% and buy-side expectations of roughly 14%, with shares falling about 9% in after-hours trading to $285.45. Piper Sandler attributed the shortfall to currency headwinds and difficult year-over-year comparisons, while also noting concerns about structural challenges from low AI search monetization. The firm acknowledged positive factors including broad engagement trends, AI improvements, and strong cloud performance, but reduced estimates to reflect more conservative search growth. Alphabet reported Q3 2026 results with cloud revenue up 103% year-over-year, while EBIT missed street expectations by 7%, prompting multiple analysts including Cantor Fitzgerald, Evercore ISI, Truist, and BofA to adjust price targets.