Investing.com -- Needham & Company raised its price target for Alphabet to $225 from $210 in a note Monday following interviews with 20 CEOs at CES and the Needham Growth Conference.

The firm also increased its estimates for Alphabet’s (NASDAQ: GOOGL ) financial performance in the fourth quarter of 2024, as well as for fiscal years 2025 and 2026.

For Q4 2024, Needham now projects total revenues of $96.4 billion, reflecting a 12% year-over-year increase and 1% above prior estimates.

Net revenues are expected to reach $81.5 billion, up 13% year-over-year, with operating income at $30.2 billion, marking a 27% year-over-year gain. Adjusted earnings per share (EPS) are forecasted at $2.11, a 29% increase year-over-year and 4% above earlier estimates.

The primary driver of this growth is said to be Google Cloud. Needham raised its Q4 2024 Cloud revenue forecast by 7% to $12.1 billion, nearly doubling the segment’s operating income estimate to $2 billion.

The firm anticipates strong momentum in the Cloud business to continue into fiscal years 2025 and 2026.

For FY 2025, Needham projects Alphabet will generate total revenues of $390.2 billion, net revenues of $331.1 billion, and EPS of $8.96, all up approximately 12% year-over-year. For FY 2026, total revenues are expected to grow 12% to $435.8 billion, with EPS rising 15% to $10.27.

“Strength is primarily being driven by the Cloud business,” Needham analysts wrote, citing sustained trends that contribute to Alphabet’s robust growth outlook.