The Bank of France supports Alphabet Inc. Class C (GOOGL.US) "outperforming the market" advertisement, strong + cloud business exceeds expectations to support valuation expansion.

French bank BNP Paribas said on Monday that Alphabet Inc. Class C (GOOGL.US) is expected to emerge victorious in both artificial intelligence and cloud computing. Analyst Nick Jones from the bank initiated coverage of Alphabet Inc. Class C, rating it "outperform" with a target price of $355. He further pointed out that the two main catalysts driving the stock price higher are: the advertising business performing better than expected, easing concerns about AI chatbots eroding Alphabet Inc. Class C's search share; and stronger-than-expected growth in Alphabet Inc. Class C's cloud business. In a report sent to clients, Jones wrote, "We see Alphabet Inc. Class C as the winner in AI/cloud computing, dominating in the search field, possessing the leading video advertising platform YouTube, and continuously expanding its cloud computing business through Alphabet Inc. Class C Cloud." "After experiencing pressure from regulatory scrutiny, intensifying competition in search and advertising, and uncertainties in long-term AI positioning, the stock price of Alphabet Inc. Class C has started to rebound - as the company continues to demonstrate its AI capabilities, we believe there is still room for further multiple expansion in valuation."