Phillip Securities Downgrades Google to Accumulate After Antitrust Ruling

Phillip Securities has downgraded Google (NASDAQ: GOOGL) to an Accumulate rating after a sharp rally in its stock price following last week’s U.S. antitrust ruling. The brokerage raised its target price to $265 from $235, reflecting stronger market sentiment while noting that the upside may now be more limited.

Shares of Google surged after U.S. District Judge Amit Mehta issued a decision in the Department of Justice’s landmark antitrust case. The court ruled that Google maintained an illegal monopoly in search services and text advertising through exclusionary practices. However, the most severe penalties sought by regulators—such as forcing the sale of the Chrome browser or restricting Android—were rejected.

Instead, the ruling barred Google from certain exclusive agreements and required it to share parts of its search index and user-interaction data. The outcome was considered far less disruptive than feared, easing investor concerns about potential structural changes. Judge Mehta emphasized that forced divestitures of Chrome and Android were unnecessary, calling the DOJ’s demands excessive. The parties are expected to reconvene by September 10 to finalize the judgment.

Investors largely welcomed the decision, interpreting the limited restrictions as minimal to Google’s core business. Phillip Securities agreed, noting that Google’s strong product ecosystem and partner incentives reduce the impact of exclusivity restrictions. Analyst Serena Lim Yi Qi stated the firm kept its FY25 revenue forecast unchanged but lowered its weighted average cost of capital from 7.7% to 7.4%, citing improved confidence post-ruling.

The brokerage expects Google to benefit from AI-driven innovations and operational efficiencies, supporting long-term growth. While the stock’s recent rally limits immediate upside, Phillip Securities believes Google remains well-positioned in digital advertising and search.